A popular crypto strategist and trader is looking at fractal patterns to predict where several of the top cryptos are headed after a recent downtrend affected most of the market.
The pseudonymous analyst known as Capo offers his 214,600 Twitter followers a chart that highlights how previous Bitcoin (BTC) price dips early in 2020, as well as this past spring and summer, preceded impressive gains for the top crypto.
Capo is referring to fractal analysis in the tweet, used by traders and investors to predict future price action based on the patterns and trends created by past data. When responding to a question asking for clarification about whether BTC is headed up or back toward the recent lows, Capo says,
“Low time frame it’s possible another sweep to the lows, but you never know. Hold is the way.”
At time of writing, Bitcoin is flat on the day and trading for $57,096.
Capo next turns his fractal lens to Binance Coin (BNB), the native token of the international cryptocurrency exchange Binance. He emphasizes a sequence of previous corrections, parabola bases, and extensions to chart out a potentially wild breakout for BNB in the second half of 2022.
“BNB. Interesting fractal.
I don’t know how long the base of the [parabola] will take, but the breakout could be epic.”
BNB is also about even on the day and is currently priced at $624.55.
The analyst goes on to look at the leading smart contract platform Ethereum (ETH) when paired against Bitcoin. He provides a chart showing a series of higher highs and higher lows which make him optimistic about ETH’s relative price action over the next few months.
Squiggly never lies.
I’m still long on this pair…”
Ethereum is up nearly 5.5% on the day and exchanging hands for $4,695.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/WhiteBarbie/DDevecee