- Bitcoin has dropped dramatically since the $15,975 highs seen earlier this week, falling as low as $14,300.
- The coin currently trades for $15,000 after a strong bounce.
- Analysts see this as bullish as the low-$14,000s held as support.
- Though, an analyst expects $14,000 to soon be tested by the leading cryptocurrency.
- The analyst shared a fractal showing that the recent price action now looks similar to that seen in the 2017 rally.
Bitcoin Could Soon Retest $14,000, Key Fractal Analysis Shows
Bitcoin has dropped dramatically since the $15,975 highs seen earlier this week. The leading cryptocurrency traded as low as $14,300 earlier today, though has since bounced back toward $15,000.
Analysts see this as bullish as the low-$14,000s held as support. $14,000 has long been a level of technical importance for Bitcoin. It acted as the highs during 2019’s summer rally, along with it also marking the 2017 yearly candle close.
While bulls still seem to be in control, an analyst expects $14,000 to soon be tested by the leading cryptocurrency.
The chart below was shared in the wake of the move lower. The chart suggests that Bitcoin’s price action over the past few weeks looks eerily similar to that seen in May of 2017, during which the cryptocurrency saw a similar rally to the one it is seeing now. What’s also interesting is that BTC is now almost exactly ten times higher than it was when this fractal played out.
The fractal analysis indicates that Bitcoin is likely to retest $14,000 twice in the coming week, then will resume its rally if it holds $14,000.
Chart of BTC's price action over the past few weeks with fractal analysis of 2017 rally by crypto trader Coiner Yadox (@Yodaskk on Twitter). Source: BTCUSD from TradingView.com
The trader that shared this fractal is the same one that at the end of August predicted BTC would hit $9,755. He was proven almost exactly accurate just a week later when Bitcoin bottomed at $9,800 in a rapid move lower. $9,755 was not reached but it was close enough to be deemed an accurate call.
Medium-Term Trend Still Positive
Bitcoin’s long-term trend remains positive. Tyler Winklevoss, CEO of Gemini and a Bitcoin billionaire, recently commented on BTC’s recent price action:
“I do think we will see an all-time-high price for #Bitcoin before 2020 is over. Even though the price has climbed from 10k to almost 14k in less than a month, it hasn’t really gone on a breakout run yet. When we start to see 3-5k surges then the bulls will be on the run.”
He recently added that he thinks the cryptocurrency could surmount $500,000 in the years ahead. $500,000 per coin would give Bitcoin a higher market capitalization than that of gold.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Analyst Who Called Bitcoin Drop Thinks $14,000 Is Next Due to Fractal