Then, within the span of some fifteen minutes, Bitcoin collapsed by 14%, depending on what exchange you refer to, then rallied by 7% within another 15-minute time span. As CNBC’s “Fast Money” recently quipped, “this is what volatility trades like.”
To say that the Bitcoin price action on Wednesday has been crazy would be somewhat of an understatement. For those who missed the memo, BTC found itself up 20% at some point yesterday, carving out a foothold for itself in and around the $13,800 price point, a key long-term resistance.
Despite the uncertainty on behalf of bears, one trader recently brought up an interesting fractal, which reveals that the current rally is just getting started. Optimistic, I know, but let’s take a look.
Ayan Dasgupta shows that over the past few months, Bitcoin has been experiencing patterns in its price movement, marked by larger gains (1.62x) and longer epochs (1.2x). If you look at the chart below, this surely is the case. Each rally has been larger than the last, but the gaps between each large surge have gotten longer.
Anyhow, Dasgupta’s fractal suggests that Bitcoin could hit $29,890 by August 21st – a mere 50 odd days away. He does note, however, that if this move came to fruition, traditional indicators, namely the Mayer Multiple (price over 200-day moving average), would enter unprecedented regions.