The Bitcoin price has now showed bullishness once again, beating the $100,000 resistance and continuing to rise. This seems to be par for the course for the leading cryptocurrency by market cap as sentiment has returned into the positive territory over the last few days. With this trend playing out, a crypto analyst has explained that the Bitcoin price is actually mirroring an important fractal from four years ago that has usually led to bull markets.
Bitcoin Price Fractal From 2020 Returns
In a TradingView post, crypto analyst TradingShot explained that the current Bitcoin trend is mirroring the one from 2020, and that both fractals are moving similarly to each other. The price action looks to be the same, especially with accumulation and distribution playing out in similar fashion.
For the accumulation phase, Bitcoin saw the initial 1st phase play out between May and August in 2020, and now a similar accumulation had played out between March and September in 2024. Just like in 2020, the accumulation in 2024 ended a bullish rally, which saw the Bitcoin price go from below $70,000 to above $100,000 in a matter of months. This is similar to the rally from below $9,000 to above $12,000 that happened back in 2020.
What followed this both times is a period of distribution, where the Bitcoin price suffered downward and sideways movement for a number of months. This has played out into the start of 2025, in the same way that was seen between August and October 2020. Now the second accumulation trend has been completed, just like it was in 2020, and if this continues to play out, then it could end in a breakout for the digital asset.
As a result, the Bitcoin price has now broken the Pivot trend line separating the distribution from the second accumulation trend. At the time of the crypto analyst’s post, the Bitcoin price was in the retest phase, which it was testing at $97,000. Since then, the Bitcoin price has broken this retest zone and has marked an upward trend as a result.
Currently, the 50-Day Moving Average, $97,100, continues to serve as support for the cryptocurrency and this is the level that bulls will have to hold to continue the price rally. The analyst explains that as long as this level is maintained, then the Bitcoin price could see a rally similar to what was seen between October 2020 and April 2021. TradingShot also pointed out that the RSI sequences are also identical, suggesting that the cryptocurrency could follow this trend fully.
If this fractal plays out like it did before, then the target for the Bitcoin price is set at $150,000 for this cycle. Other macro developments such as the Fed choosing to keep interest rates the same and not raise them has also emboldened investors into risk assets such as Bitcoin.
Featured image from Dall.E, chart from TradingView.com
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