Good day Hiveians!
Join me in analyzing the crypto markets!
Have you ever studied charts and looked for patterns?
I like to do that in my posts a lot and it is very easy to spot reoccurring patterns (i.e., fractals). While they never repeat exactly the same, they almost always give us a clue for the shape of the next one. While we therefore cannot use them to make exact predictions about prices (at least in most cases), they tell us where things are heading and also on what time scale they will probably play out. This is obviously tremendously useful when looking at the markets.
In a previous post I argued that the current bear market will last at least for another half a year. Bitcoin just now entered the bear market territory for the RSI and as you can see BTC stayed there for at least 6 months in previous cycles.
But what about altcoins?
I noticed by looking at different altcoins that they all point to the same time frame: a bear market until the end of this year and then the start of the next bull cycle.
- Let's start with ETH
We can see 3 very closely resembling patterns. They all form a triangle (the last one still has to occur) which seems to be the basic shape in which ETH is moving in. The two ovals resemble themselves to an even higher degree and as you can see there is still a bit room to the downside. ETH will probably bottom out at around $900 before moving into the bull cycle.
- Next up, Binance Coin
Here is an almost even bigger resemblance. There are also 3 shapes, but I marked the first and last one which look even more alike. The first one would suggest one more big drop before a recovery could set in. This drop perfectly retraces to the trend line forming from the previous ATHs and would be at around $130.
- Finally, LTC
Again, three basic shapes. This is basically just one long downward trend, but spot how they tend to end. One more final push downwards which seems to be about to happen for LTC bringing it potentially down to about $30.
All of these examples agree on one thing: Their shape or fractal all end in Winter of 2022. Is this a coincidence? Whatever it is, this gives me confidence that the bear market will probably come to a close at the end of this year.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
Check out the Love The Clouds Community if you share the love for clouds!