Bitcoin Fractal, The Bullish Scenario

Understanding Fractals

Fractals are repeating geometric patterns, present all around us in the form of repeating geometry. In markets, a repeating geometry can be observed on charts in various magnitudes. While most view charts as the price of a commodity or security being affected by buying and selling. It is important to acknowledge that the buying and selling is the result of market participants.

State of Affairs

On 8/14 our team called for a short squeeze on Bitcoin, and since then we observed the chart rally +24%, only to pullback some -15% for good reason.

The Fractal

Repeating geometry we say? Absolutely,
Quantifiable, with 6 phases, similar market conditions, and Fibonacci correlation.

Relevance

The current state of Bitcoin and market conditions resembled April.
BTCUSDSHORTS, aka short selling, is once again climbing back to all time highs. If that was the only resemblance, we wouldn’t be writing this publication.

Nitty-Gritty

“Why is the market doing this?” is a valid question. “Efficiency” is the most reasonable explanation we can come up with.
The previous minor squeeze that we traded on 8/14 proved profitable, as we traded it both ways and we were able to make great profits, and so was our trading community. But was this minor squeeze sufficient for a head turn on Bitcoin?
Absolutely not, as Bitcoin’s previous highs couldn’t be breached, so the market resorted to a previously identifiable pattern, that has proven to be efficient.

We expect this developing Phase 5, to increase the amount of BTCUSDSHORTS, and other short sellers to a new all time high, for a more efficient and violent squeeze.

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Coin Observatory

Coin Observatory

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Bitcoin Analysis, Digital Asset Management, Trading Community Mentorship, Wealth Management. www.coinobservatory.com