The 7 year
XAUUSD
trend presents a freakishly similar fractal pattern to the 4 month
BTCUSD
bear trend. My prediction is that
BTCUSD
will follow in
XAUUSD
footsteps, illustrated by the blue line:
1) BTCUSD touches the current resistance once more (red line)
2) BTCUSD fakes a break of the log support (green line) into 7200 territory
3) BTCUSD bounces and moves up to $12K for the month of April, breaking the 4 month long resistance (red line)
Disclaimer: This is not financial advice
1) BTCUSD touches the current resistance once more (red line)
2) BTCUSD fakes a break of the log support (green line) into 7200 territory
3) BTCUSD bounces and moves up to $12K for the month of April, breaking the 4 month long resistance (red line)
Disclaimer: This is not financial advice
Remember, if you try to match every single small candlestick pattern in a fractal, it's not always going to work out on a micro-level, but fractals are about identifying a macro-view of a similar behavior pattern between two things. You first must identify the similar chart patterns, and then you must ask the question: why the two are exhibiting similar patterns? Two assets, commodities or securities may have similar patterns for any number of reasons. Technicals? Overall market sentiment (bear/bull)? Perception of value over time?
In the BTC and Gold case, I think that people are beginning to think of them in the same way--a store of value. Gold declined in value from a top of 1900 in mid-2011 to a low of 1060 in 2016. This is because of confidence in the US Dollar and markets. But now that we are starting to see a loss of confidence in the market and dollar with the deficit building and inflation rising, I think the sentiment is changing back in the favor of store of value places like Gold and a potential new digital gold in BTC.
Thanks for reading and will post new fractal chart shortly!