Ledger Nano S - The secure hardware wallet

Bitcoin price eyes $7000, fractal analysis suggests

bitcoin-fractal-analysis

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.

bitcoin-fractal-analysis

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.

Ledger Nano S - The secure hardware wallet