Bitcoin price is experiencing a slight pullback to retest previous resistance that may have flipped as support. If the top cryptocurrency by market cap holds the level and moves up from here, it will continue to follow a fractal pattern that has occurred every time BTCUSD’s 3D price action has passed the Ichimoku cloud.
Let’s take a look at the engineering tool, the fractal, and previous instances of the same setup.
“Time” for another bitcoin price fractal
The Ichimoku is one of the few technical tools that incorporates time and not just price into its calculations and indicators. For example, the Chikou span is plotted back 26 periods to show where key levels occurred. The cloud itself consists of two ranges – Senkou Range A and B – drawn 26 periods forward to provide potential areas for future support and resistance.
The result is a historical and future graphical view of potential areas of interest. The Ichimoku has even more individual indicators. Tenkan-sen and Kijun-sen focus on the current price action and signal when the bitcoin price is bearish or bullish. The Tenkan-sen in blue is crossed over the Kijun-sen in red, and the prize is over both and has emerged from the cloud.
Will Bitcoin Follow the Fractal Formed After Leaving the Cloud? | BTCUSD on TradingView.com
Each time these conditions were met, the Bitcoin bear market bottomed and the crypto market continued to climb. It also resulted in a repeating fractal that the BTCUSD 3D charts have been following incredibly well so far. Aside from the price action being closely matched, multiple technical tools are pointing to the same strength in the bulls.
Lightning strikes twice with several technicians
If the fractal is followed from here, the bitcoin price could nearly double in less than 30 days. Coming out of the 3D Ichimoku cloud in 2015 resulted in a 2x rally before a pullback. The same thing happened in 2018. Will it happen again now?
Zoomed in and layered over the chart with the fractal, we can take a closer look at the similarities. After an initial rally, bitcoin price consolidated at the top of the 3D Ichimoku cloud only to eventually surpass it. But it’s not just the Ichimoku that hints at a similar setup, either.
Not only is the price action the same, but the technology and timing are also the same | BTCUSD on TradingView.com
The Average Directional Index is at the exact same level as 2019. The ADX provides an indicator of the strength of the underlying trend, suggesting that bulls are gaining momentum. Shockingly, the underlying LMACD is also at the same exact 0.07 value from 2019.
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