Various analysts shared bearish sentiment regarding Bitcoin’s price action recently. However, a geometric pattern hints that bitcoin may not be that bearish in the least.
Analysts pointed out the current downtrend. The decrease started when Bitcoin was rejected at $10,400 during the early part of June. When examining it through, it seems that the move lower has been bearish. Moreover, Bitcoin has printed consecutive lower highs and lower lows, a trend that seems to stretch and not end soon.
An analyst shared a chart in a tweet hinting Bitcoin’s medium-term outlook is not much better when one would factor in market volume. He emphasized how volume trends also mean that the cryptocurrency market is in a downtrend.
Nonetheless, a historical fractal is saying that Bitcoin being rejected at $10,500 and experiencing a downtrend does not imply it’s bearish.
Bitcoin May Not Be Bearish After All; Shows Fractal
On July 3, an analyst shared a chart, connecting it to Bitcoin’s recent price action.
It may be hard to believe, but the chart above is not portraying Bitcoin’s price action over the past few weeks. Furthermore, the chart shows the price of Apple’s stock from a long time ago, when the asset was trading under triple digits. As shown in the former part of this article, Bitcoin and Apple over this historic time frame are strangely similar.
Both of them possess strong rallies into a range, a false breakout, and then retracing back to range lows. In the historic case of Apple, after the asset’s retracement to range lows, it performed a rally. On the other hand, Bitcoin went back to range lows.
However, if history would repeat itself, Bitcoin will surely break higher. It will surpass $10,000, then $10,500 when the bull run continues.
The analyst noted above is not the only one saying that Bitcoin’s current range is bullish in reality, in spite of the majority’s opinion.
The trader who foretold that Bitcoin would have a V-shaped reversal in March posted the chart below on June 23. The same with the chart above, it shows that Bitcoin is bound to break above the current consolidation to $10,000 and above.
In a separate tweet, he said that Bitcoin could see an “inverse $6,000 capitulation” soon if it holds $10,000.
The term “$6,000 capitulation” was referring to the time when Bitcoin plummeted from $6,000 to $3,000 within weeks during the bear market in 2018.