The cryptocurrency market was blessed with numerous cryptocurrency and blockchain enthusiasts, especially after the rise and fall back in 2017. Traders and investors became divided between supporters of another bigger rise, and others claiming that cryptocurrencies are just another useless hype or fad. So far, the first group is showing signs of a correct prediction, with the whole crypto market being on the rise again, almost reaching the highs of 2017.
What the hell are Fractals and why they matter?
Fractals are indicators on candlestick charts that identify reversal points in the market. Traders often use fractals to get an idea about the direction in which the price will develop. A fractal will form when a particular price pattern happens on a chart from past prices or even areas of support or resistance.
Technical traders usually tend to analyze past price-actions in order to predict potential areas where prices would reach.
The obvious drawback is that fractals are lagging indicators. A fractal can’t be drawn until we are two days into the reversal. However, most significant reversals will continue for more bars, benefiting the trader.
Twitter revelations – Fractals hitting soft spots
Back in September, when the price of Bitcoin was consolidating around USD 10,000, a Twitter user by the name of “il Capo Of Crypto” called out a potential price increase in case prices did not fall below his consolidation area and drew multiple areas which were considered soft targets for the price of BTC to reach.
After some time through September, the price of BTC did exactly what he predicted, and went on to reach his target of around USD 13,000, all based on fractal analyses that draw similarities to past price behaviors from 2017.
This Twitter user even was shocked to see his own price prediction hit all his forecasted areas and kept on updating his charts and sharing it with his followers.
This user even managed to draw similarities to Legacy Markets, showing the behavior of the NASDAQ during the dotcom bubble in the 2,000s and the great crash of subprime mortgages in 2008, then drew similarities to the cryptocurrency market, to show how prices tend to recover post crashes.
We await further market developments to see how predictions come to play, and mention worthy analyses that are spot on!
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