According to crypto analyst Merlijn, Bitcoin is currently displaying the most powerful fractal in the market. This observation comes as Bitcoin surges to a one-month high of $75,000, despite the rising tensions between the U.S. and Iran.
Bitcoin’s Dominant Fractal Pattern
Merlijn recently shared on an X post that Bitcoin has formed a remarkably strong fractal pattern in the current market. Drawing parallels with gold’s pattern in 1974, where it completed three waves followed by a Fibonacci extension and a parabolic move, Bitcoin now appears to be mirroring this structure with the third phase underway.
Further Insights
The analyst emphasized that $62,000 is a critical level before the Fibonacci extension comes into play. If Bitcoin holds firm at this level, the $226,000 Fibonacci target could be unlocked. However, a breach below this level would potentially lead to another low before the fractal pattern progresses. Merlijn highlighted that Bitcoin’s trajectory appears to align with that of gold, hinting at a looming parabolic move.
In another X post, the analyst expressed optimism regarding Bitcoin’s outlook, attributing it to global liquidity. Noting the expansion of M2 and Bitcoin’s entry into the green accumulation zone, Merlijn pointed out that similar occurrences in the past led to significant growth in Bitcoin’s value. He suggested that maintaining levels above $74,000 would validate the current liquidity cycle, while a drop below $65,000 might precede a rally.
Bitcoin surged to $75,000 recently, indicating a resurgence of bullish sentiment in the market despite geopolitical tensions. Seasoned trader Peter Brandt even suggested that Bitcoin could surpass $80,000 in the near term.
Positive Market Indicators for Bitcoin
In a recent report by Glassnode, the on-chain analytics firm highlighted signs of stabilization and recovery in the market. The shift to positive spot CVD suggests a resurgence of buying pressure, while derivatives markets show increased but cautious participation.
Further Analysis
Glassnode pointed out that futures open interest is on the rise alongside a surge in futures CVD, indicating persistent short positions. Moreover, negative funding payments suggest ongoing bearish sentiment. While Bitcoin ETFs are gaining traction, trading volumes have slightly cooled after a period of heightened activity.
On-chain activity remains subdued, with active addresses declining and transfer volumes showing modest improvement. Fee volume has remained stable, reflecting consistent but relatively quiet network usage.
As of the latest data, Bitcoin is trading around $74,100, marking a positive trend over the past 24 hours, according to CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com