Bitcoin Following Scarily Similar S&P 500 Fractal Would Set New All-Time High By Late 2020

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A shockingly similar fractal from the S&P 500 during the 2008 recession Bitcoin was born from is playing out across the cryptocurrency’s price chart.

If the first-ever crypto asset continues to follow the same path as the SPX did back then, Bitcoin will set a new all-time high record before the end of 2020.

S&P 500 Recession Fractal Appears on Cryptocurrency’s Price Charts

There’s no denying Bitcoin is at a critical moment in the cryptocurrency’s young life. But it may have been preparing for this moment for its entire existence.

Bitcoin was built during the economic recession that began in 2008. By January 2009 as the economy reached its worst point according to the bottom of the V-shape of the S&P 500, the Bitcoin core client was released into the wild.

Related Reading | Why Nasdaq Setting A New All Time Could Be The Boost Bitcoin Needs

In an odd twist, the price action of the S&P 500 back then almost exactly resembles the current BTCUSD price action following the February 2020 top, the subsequent Black Thursday collapse, and the steady rebound through now.

Lining up the two charts below, the resemblance is striking.

While the fractal is likely a mere coincidence and simply is mimicking the human emotional reaction that causes buying and selling of assets, it is interesting to note that the Bitcoin price action in question lines up perfectly with the stock market during its creation.

Bitcoin Birth Fractal Brings Asset To New All-Time High In November 2020

Upon zooming out, we can see that not only did the S&P 500 break the previous high, but it also continued into an uptrend that is only just now potentially coming to an end, some 12 years later.

bitcoin btcusd spx s&p500 2

Since then the cryptocurrency has grown from virtually worthless, to trading just under $10,000.

Resistance at $10,000 lines up with the top in the S&P 500 prior to the 2008 market collapse, which the S&P 500 broke through and never looked back.

Superimposing the same price action that followed from current levels over Bitcoin price action, shows the asset breaking through $10,000 any day now.

bitcoin btcusd spx s&p500 ath

If Bitcoin price continued to follow the fractal, it would put the asset at a new all-time high by November 2020.

Fractals are a polarizing topic in the crypto world. Some analysts watch out for these repeating patterns like a hawk and use them to their advantage. Others say they’re worthless and just cloud judgment.

Dozens of fractals have been found that closely match BTCUSD price action, including fractals from Amazon, gold, and many more. At times, the cryptocurrency has shown correlation to avocados, Beyond Meat burgers, and most recently, the S&P 500.

Related Reading | Chartered Market Technician Claims Crypto Poised For Strong Uptrend 

What these other fractals don’t have going for them, is that they didn’t take place during the same timeframe that the first-ever cryptocurrency was created. Will this Bitcoin birthright fractal bring the asset to a new all-time high this year?

Via: https://www.newsbtc.com

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