A fractal has been discovered in silver and altcoins that mimics the early days of Bitcoin. Silver is already on the move, starting to follow the fractal, but the crypto market is lagging behind. If – like Bitcoin has followed gold – altcoins continue to follow silver, an explosive surge is just around the corner.
Fractal Foretells Explosive Breakout in Altcoins Based on Early Days of Bitcoin
According to a fractal discovered by one crypto analyst, both silver and the total altcoin market cap appear to be mimicking early Bitcoin. Notably, the two assets classes are following the path of Bitcoin’s bear market bottoming process that took place from 2015 through 2016.
Altcoins and silver have remained in a similar sideways accumulation range, where investors may have been loading up on the scarce assets ahead of a markup phase.
Related Reading | Are Altcoins Silver To Bitcoin As Gold? Unusual Crypto Correlation Discovered
The same sort of bottoming pattern also played out in the gold market, and the asset not only has been in an increasingly strong uptrend, but it has recently set a new all-time high.
If the assets do continue to follow the original crypto asset’s bear market bottoming fractal, as soon as the range is broken, an explosive pump takes place next. Silver just had its surge, nearly doubling in value over the last month. Is it now altcoins time to shine?
XAGUSD / Total 2 (Alt Market Cap) / BTCUSD Historic Fractal Comparison | Source: TradingView
Will Crypto Follow Silver and Gold As The Fractal Suggests?
Fractals are repeating patterns that play out in price charts of financial assets like crypto. However, they are a polarizing topic in the trading world. Some analysts claim fractals only cloud judgment, while others give ample credence to the repeating patterns.
These repeating patterns are found all over nature, in everything from snowflakes to the veins of leaves, and are often based on geometrical shapes and Fibonacci ratios. Geometrical shapes drawn on price charts can tip traders off to future price action, while Fib ratios can act as levels of support and resistance.
Related Reading | Silver & Gold: Precious Metals Tapping New Highs Bodes Well For Crypto
No one truly understands what dynamics are at play that causes all of this to occur, but it can be used by analysts in various ways with interesting results.
Experts like Thomas Bulkowski have endlessly studied the results of these geometrical patterns and developed a set of statistics that can be used to temper expectations. Others, like William Delbert Gann, believe the patterns have more to do with the precise angles coinciding with other factors, like time.
Whether or not this silver and altcoin following Bitcoin fractal is valid or not, will only be known in hindsight. For those considering crypto or the shining precious metal, is this an opportunity you really want to miss?
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source https://cryptonews.wealthsharingsystems.com/2020/08/silver-fractal-are-crypto-altcoins-on-the-cusp-of-an-explosive-surge/
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