Dramatic $17,000 Bitcoin Peak Possible Within Weeks Based on Halving Fracal
If a fractal plays out on Bitcoin price charts matching the previous halving post-consolidation breakout, the cryptocurrency could keep on climbing from here.
The target, if the rally takes a similar path, would put valuations of the top cryptocurrency at between $15,000 to $17,000 before peaking.
Bitcoin Breaks Out: What Happens Next Will Be Fast and Furious
Bitcoin price exploded early last week on the heels of gold setting a new record and the government committing to another $1 trillion in stimulus spending.
Inflating money supply has prompted a flight to hard assets like precious metals and cryptocurrency. Digital gold and its physical counterpart have both benefited from the recent weakness in the dollar.
Bitcoin earns its comparison to the precious metal due to several key similarities. For instance, gold has a finite supply and the cryptocurrency is digitally coded so only 21 million BTC will ever exist.
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This supply is slowly tricked out over the course of years. Every four years give or take, the amount of BTC that is released freely into the market is then slashed in half in an event called the halving.
Several supply based theories exist that attempt to give a future valuation to the asset based on scarcity. Those who follow this belief expect a repeat of past cycles and the asset to grow in value how that the most recent event has passed.
But will things really play out the same way? One pseudonymous trader has discovered a potential fractal playing out that points to a peak much higher above current levels. And it may happen a lot faster than anyone is prepared for.
BTCUSD 2016 Post-Halving Fractal | Source: TradingView
Post-Halving Fractal Targets Between $15,000 and $17,000 BTC in Less Than a Month
Analysts often look at past Bitcoin cycles to gain perspective into future price action. One trader has done just that and come up with a compelling fractal from the last block reward halving. This took place in 2016 and sent Bitcoin off on its biggest bull run ever.
The same could be happening again right now, according to technical analysis and fundamental data.
BTCUSD 2020 Post-Halving Fractal | Source: TradingView
According to the fractal, this pump may only just be getting underway, with a proposed target of between $15,000 and $17,000 target. What’s really shocking, is the timing of the target.
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The fractal suggests a rapid and impulsive burst to this level within the next few weeks, and before August has come to a close.
Bitcoin Supply Percent Active 2+ Years | Source: glassnode
Further fundamental data suggests that the cryptocurrency is at a similar point in its market cycle. If this is the case, and the asset’s valuations rising are driven by the halving effect and digital scarcity, things may take a similar path.
Fractals are a touchy subject amongst traders, so take the targets with a grain of salt.