This Bitcoin price fractal from 2018 could trap bulls, sink BTC price to $25K — analyst
A recent price recovery in the Bitcoin (BTC) market risks getting erased due to an eerie fractal from 2018.
First spotted by CryptoBullet, an independent market analyst, the fractal shows Bitcoin recreating an inverse head-and-shoulders (IH&S) pattern that preceded its price decline toward $3,100 later in December 2018. As a result, anticipations that BTC's price will undergo similar declines in 2022 might grow.
That is primarily because of the strikingly similar price trends between the pric downtrends in 2018 and 2021-2022. For instance, Bitcoin formed two higher highs in April and May 2018 around $10,000 before plunging below $6,000 in July while constructing the IH&S pattern.
Interestingly, in October 2021-February 2022, Bitcoin underwent an identical price trajectory, forming two higher highs — near $65,000 in April and $69,000 in November. Later, the price corrected to below $33,000 in early February while forming another IH&S pattern.
With IH&S being a bullish reversal pattern, BTC now awaits a breakout move towards or above $50,000. A similar technical setup shared by market analyst Lark Davis projects Bitcoin above $60,000.
#bitcoin forming a potential inverse head and shoulders pattern with a price target over 60k. Valid on break of orange line which is just beyond key area of resistance. pic.twitter.com/ijjZPzm6cB
But a climb to $50,000 — or even $60,000 — may not absolve Bitcoin from its prevailing bearish bias. If the 2018 fractal repeats itself religiously in 2022, BTC's likelihood of falling toward $25,000 appears higher, as explained in the chart below.
Notably, the 2018 price action saw Bitcoin breaking out to the upside after its IH&S formation, reaching almost $10,000.
In doing so, BTC's price briefly
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