Bitcoin Parabola Fractal Shows Its Potential to Retest $20K; Here’s Why

Bitcoin plunged on Thursday, stalling a price rally driven by fears of the US dollar debasement and higher inflation. The benchmark cryptocurrency fell to $16,200 a token, a multi-week low, ahead of the New York trading session. By doing so, Bitcoin also broke below a crucial parabolic support that had offered it a concrete price […]

Bitcoin Parabola Fractal Shows Its Potential to Retest $20K; Here’s Why

Bitcoin plunged on Thursday, stalling a price rally driven by fears of the US dollar debasement and higher inflation. The benchmark cryptocurrency fell to $16,200 a token, a multi-week low, ahead of the New York trading session. By doing so, Bitcoin also broke below a crucial parabolic support that had offered it a concrete price floor during its relentless bull run in the previous seven weeks. Looking closer, the bubble appeared reminiscent of a structure that the BTC/USD chart formed between March and May earlier this year. The pair similarly rallied to the upside while holding a bullish parabola as its support. Later, it corrected out of the pattern, only to trade sideways for a prolonged period and eventually resume its uptrend. Bitcoin trended sideways between the 23.6 percent and 0 percent Fibonacci levels after breaking out of the March-May 2020 parabola. Source: BTCUSD on TradingView.com Bitcoin trended sideways between the 23.6 percent and 0 percent Fibonacci levels after breaking out of the March-May 2020 parabola. Source: BTCUSD on TradingView.com Meanwhile, another similar structure appeared during the Bitcoin bull run of early 2019. Nevertheless, the only difference was that it ended a deeper retracement to the downside, instead of March-May 2020’s sideways consolidation. The Current Bitcoin Parabola The two fractal served their respective bias for the current parabolic case. As the BTC/USD exchange rate broke out of the bullish structure, it found itself landed in the 0-23.6 percent range of its Fibonacci retracement graph. Interestingly, the pair held the 23.6 percent level as support during the Thursday morning hours in London. Bitcoin September-November bullish parabola. Source: BTCUSD on TradingView.com Bitcoin September-November bullish parabola.