Coronavirus Crash Repeating?

Is Coronavirus Back

 Maybe not, but the fractal of the March 2020 crash seems to be clear as day at this point. We talked about potential outcomes in the 8/12/22 Market Deep Dive on how we thought crypto would push towards $28-31K in this recovery wave, but not without some bumps up and down in price. BTC did retest $24K and tried to break out but could not break the resistance of the rising wedge and got rejected into a fallout. We predicted BTC would move towards the $22K level if rejected, which has blown through it with force down to $21.3K. We are not surprised given the velocity of the retracement, which resulted in $185M long liquidations from those expecting BTC to break higher. These levels of liquidations haven't been seen since the crash in June to below $20K.

Coronavirus Fractal

The current Bitcoin chart is on the left side and the Coronavirus crash is on the right. As seen by the marked numbers in the chart it's very easy to distinguish the same pattern is playing out. Remember, nothing is ever exact, but these fractals do rhyme with very similar price action. If true we should see this as the low and a pump to new highs, back towards $26K with consolidation then a push up towards $28-31K as expected. Whales manipulate prices often to create price charts that people recognize. When the masses take note of these patterns that is when smart money breaks this pattern causing the masses to be on the wrong side. This is why you can't take fractals as exact price action to follow that will happen, but it is a pretty good representative of confluence for what may happen given the proper conditions. The stock market has recovered over 50% from its retracement in the DJI and NASDAQ. Crypto has always been a laggard to these markets by a few weeks, as we still think a major recovery leading back to $38K-45K levels is possible in the next 6-9 months in alignment with the Gold/BTC fractal you will not want to miss out on.

One lesson you will need to learn is patience, as the coronavirus crash recovered very quickly and this recovery could take some time and will feel like the crypto markets are still dead. There is usually a strong correlation between price and time. As price increases so does the time it takes for relative % moves to happen.