On April 7, Bitcoin is gradually consolidating in a bullish ascending triangle formation and is aiming at a new record high this year. A conservative estimation suggests that in a breakout scenario, Bitcoin could face resistance at $5,900-$6,100 price mark. But a fractal analysis of the most popular digital currency shows that Bitcoin is aiming at much higher level in a near-term.
This week, Bitcoin has made a dramatic jump from $4,200 to $5,300 in a matter of few hours and completed its 7-day meteoric rise in the region of $5,100 – $5,190.
Despite of this small pullback, the general mood in the market is that the bulls have finally arrived. Indeed, majority of altcoins are in green, and many have shown a two-digit percentage increase over the course of this week.
While CBOE Exchange has dropped Bitcoin futures contracts in March, their colleagues in Chicago, at the CME Group, reported a record trading day on April 4. According to CME Group, Bitcoin futures hit an all-time high volume of over 22.5K contracts (112.7K equivalent bitcoin) on April 4, surpassing previous record of over 18.3K (64.3K equivalent bitcoin) on February 19.
A rising number of Bitcoin-related search queries on Google and Chinese giant Baidu, could also be a signal of reversing market. But where does the price of Bitcoin go from here?
Bitcoin price analysis based on fractal indicators
As reported earlier this week, in a breakout scenario, Bitcoin could face ressitance at $6,000 price point. However, BTC/USD fractal analysis on a daily chart suggests that a leading cryptocurrency might swing up to even greater highs.
The first fractal formed back in Novemeber 2018, when the price of Bitcoin fell sharply breaking from descending triangle and bottomed out at $3,200, 15 December 2018.
The fractal is indicating the possibility of a trend change. This is because fractals are essentially showing a “U-shape” in price. A bearish fractal has the price moving upward and then downward, forming an upsidedown U. A bullish fractal occurs when the price is moving down but then starts to move up, forming a U.
Starting from March 26, 2019 a new inverse fractal has emerged. Assuming that a newly formed inverse fractal is mirroring the one formed in November of 2018, Bitcoin price could climb up as high as $6,900 – $7,100 price mark in upcoming weeks.