- After a strong rally from $11,100 to $12,000 over the course of five days, Bitcoin dumped on Wednesday morning.
- The cryptocurrency plunged from those highs to approximately $11,200.
- This marked a 7% correction for the asset in the span of around six hours.
- BTC has since recovered and is now trading for approximately $11,450.
- While BTC remains under a pivotal resistance level, $11,500, analysts are optimistic.
- One commentator noted that there is a fractal predicting Bitcoin will soon return to the $12,000 highs.
Bitcoin Could Soon Return to the $12,000 High: Here’s Why
Bitcoin’s strong move to the downside on Wednesday morning was triggered by two factors:
- The value of gold and silver jumped as the U.S. dollar attempting to bounce after a crushing performance on Tuesday. BTC, which tracks gold, fell.
- News spread that Bithumb, the leading digital asset exchange in South Korea, was raided by the police.
As aforementioned, BTC slipped from the $12,000 highs to a local low around $11,200.
While a severe drop that ignored technical support levels and trend lines, analysts remain optimistic about the Bitcoin rally.
One trader that has made historically accurate calls shared the chart below. It shows that BTC’s recent price action, meaning the recent correction, looks eerily similar to the highs of February and the subsequent correction.
This fractal analysis predicts that BTC will soon trade back at the highs of $12,000, then potentially continue to the upside as buyers step in. The fractal predicts that this recovery could transpire by the start of September 4th, just around 24 hours away (as of this article’s writing).
Chart of BTC's price action over the past few days with another chart from BTC's macro price action by trader il Capo of Crypto (@CryptoCapo_ on Twitter). Chart from TradingView.com
Not the Only Bullish Sign for BTC
Analysts remain optimistic about BTC for other reasons, not just the fractal that was shared above. Per previous reports from Bitcoinist, one trader noted that as long as BTC holds the $11,000 level, it remains in a decent spot on the medium-term charts:
“BTC: Nothing lost for the bulls yet, close above $11770 and I’d expect mega moon. Close significantly below and sells into the $11700 area become very attractive. Lose $11k and it’s macro pullback time, as long as it holds assume we’re gonna go further up.”
Others have been a bit more generous, noting that as long as the pivotal $10,500 support holds, all is well.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com This Stunning Fractal Predicts Bitcoin Will Soon Be Back at $12,000