- Bitcoin has stagnated after topping out in August at $12,500.
- The leading cryptocurrency currently trades in the middle of the medium-term range at $11,400.
- While some think that this price action is clearly the coin nearing a top, an analyst thinks that the cryptocurrency is primed to erupt higher.
- This analyst cited a fractal of the Nasdaq in the 2008 bear market.
- This analyst is one that has shared accurate fractals in the past, predicting Bitcoin’s reversal to $10,000 after the March crash.
Bitcoin Likely to Continue Ascent
According to a fractal analysis that compared the Nasdaq from the early-2000s to the mid-2010s to Bitcoin, the cryptocurrency is primed to continue its ascent in the weeks ahead.
As can be seen in the fractal comparison below, the cryptocurrency has looked almost identical to the Nasdaq after the 2008 Great Recession. Should Bitcoin continue to follow the path that the Nasdaq took after 2008, it will soon see a strong leg higher towards $15,000, the fractal analysis indicates.
The analyst that shared this fractal is the same one that predicted at the end of August that Bitcoin would see a decline to the high-$9,000s. He was proven correct just days later when the cryptocurrency plunged from its highs above $12,000 to $9,800 in a dramatic fashion. This same analyst has also been accurate in the past, calling the reversal from the $5,000-6,000 region to above $10,000, where the crypto-asset trades now.
Chart of BTC's price action since the end of 2016 with a fractal analysis by crypto trader Coiner Yadox (@Yodaskk on Twitter). Source: BTCUSD from TradingView.com
Fundamentals Suggest Upside Is In the Works
The fundamental trends also suggest that Bitcoin is likely to continue its ascent in the days ahead. Raoul Pal, CEO of Real Vision, recently stated that with the Federal Reserve primed to do anything to stop deflation, BTC is primed to depreciate as fiat is devalued en-masse.
“Most people don’t understand the latter but is simply put, Powell has shown that there is ZERO tolerance for deflation so they will do ANYTHING to stop it, and that is good for the two hardest assets – Gold and Bitcoin. Powell WANTS inflation. I don’t think he gets true demand push inflation but he will get fiat devaluation, in conjunction with the other central banks all on the same mission.”
He said in a recent interview that he thinks the crypto-asset will reach $1,000,000 in the coming years due to these macro trends.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Eerie Nasdaq Fractal Predicts Bitcoin Is About to See Its Next Leg Higher
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Author: Nick Chong