BTC Fractal suggests bottom is in, with a flagpole to $90k+

16 sept

In this chart, we are looking at a clear fractal pattern, which has been unfolding in a bullish structure. After a significant rally post the April 2024 halving, Bitcoin entered a consolidation phase, which is visually highlighted by the yellow channel on the right side of the chart.

Key Observations:

1. Bullish Flag Formation: We see a clear bullish flag structure following the sharp rise. Bitcoin has moved within this flag (marked by the yellow lines), indicating a healthy consolidation after the rapid ascent. This kind of price action often signals a continuation of the previous trend, which in this case is bullish.
2. Historical Fractal Patterns: Similar consolidation patterns (circled in purple) occurred in previous cycles, as seen in 2023 and prior. Each of these consolidation zones eventually broke to the upside, leading to the next leg higher. The current price action mirrors these past structures, suggesting that BTC could break out soon.
3. Volume Contraction: As we approach the end of the flag, volume has contracted, which is typical before a breakout. This is a classic sign of accumulation as sellers lose momentum and buyers prepare for the next move.
4. Breakout Potential: If BTC breaks above the upper boundary of the flag, we could see a swift move toward the 80K range, with the possibility of even higher targets beyond that in the next leg up.

Next Steps:

• Watch for Breakout Confirmation: A breakout above the upper yellow line with increasing volume would provide a strong signal that Bitcoin is ready for its next rally.
• Target: Once confirmed, the price projection based on the flag pattern would suggest a target around 90K+.
• Risk Management: In the event of a downside break, the lower boundary of the flag and the 52K support level will be key areas to watch.

Bitcoin’s price continues to follow the 2016-2017 fractal pattern closely, and based on this historic model, the next few weeks could offer substantial gains for the bulls.