Can we witness a new crash in the price of Bitcoin?
A fractal formation suggests a possible drop in the price of Bitcoin in the style of March soon. The similarities between the two are present and if the same occurs, we can see Bitcoin drop below the $ 10,000 level easily.
Although Bitcoin has risen the most in the last 24-48 hours, it still shouldn’t be considered too “optimistic”, at least not before it exceeds $ 11,500. This pump could be a ploy by buyers to arrest retailers when the price finally falls.
Bitcoin price and Wyckoff accumulation phase
Before addressing fractals, it is necessary to understand what is happening with the price of Bitcoin at the time of writing this text. The attached chart below is the price of Bitcoin on the 14th and 15th of September, 4:00 UTC.
Source: BTC / USD TradingView
So far, the price has followed the Wyckoff scheme, but the question remains – “What is the local top?”
According to Wyckoff’s accumulation theory, the price, after a fall, will start to accumulate and it is at this stage that the future interest of great individuals resides. Based on supply and demand, Bitcoin is exhibiting the Wyckoff accumulation scheme no. 2, without “spring” or test.
Based on the long position shown in the chart, $ 11,245 is the local top; on the other hand, since the target was originally intended for negotiation, it was a conservative target. Consequently, the local top can be between $ 11,500 and $ 11,600, with $ 11,200 acting as the first line of defense [neste caso, resistência].
If and when the price reaches the aforementioned local tops, we can expect the price to reverse and fall – similar to a pandemic-style drop.
According pointed by a Twitter user, Keshav Narla, there is a fractal that formed before the March 2020 crash that pushed bitcoin to $ 4,000, starting at $ 9,000. Although the pandemic has a big role to play in the March crisis, it may not be the case this time.
Therefore, it is safe to say that Bitcoin will not fall as low as before.
The fund could be around $ 8,800, much lower than the CME gap, which ranges from $ 9,645 to $ 9,995.