Crypto assets like Bitcoin and Ethereum It has been battered since the local highs in April, which raises the question of whether or not the strong bull market is over.
If not, the fractal discovered from the previous market cycle that formed this time, could provide a roadmap for the last segment of the current bull market. This is what it would look like if the path was still followed and the fractal was accurate.
Boom & Bust: Bitcoin, Market Cycles, Halving, and More
All markets are cyclical and cryptocurrencies are no different, albeit moving at a much faster rate. The always available A side of cryptocurrency also has emotional phases that alternate more quickly.
For example, gold took nearly a decade to build up before breaking out into a new bullish trend, while Bitcoin tends to rotate every four years in conjunction with Half the reward.
As the leading cryptocurrency advances in terms of market capitalization, the market cycles seem to get longer. But as for altcoins, they are moving just as fast, if not faster.
This may be the reason why Bitcoin is turning bearish, while altcoins Still too hot. Regardless of the logic, altcoins high or bitcoin bottoms here, the overall market graph indicates that another move is coming.
Finding a fractal: what the last stop looks like via cryptography
The fractal in the total cryptocurrency market cap closely simulates a much faster and sharper parabolic rally compared to the recent market cycle.
Although the recent crash has turned sentiment sharply downward and questioning whether the top is there, and whether another leg matches the fractal, the shaking now will be more painful than any breakout.
Is Bitcoin following a similar fractal to 2017? | Source: CRYPTOCAP-TOTAL on TradingView.com
What the fractal indicates is going to happen is a $9 to $10 trillion rise in all assets.
The lion’s share will still be due to Bitcoin and Ethereum, but this number indicates that the rest of the crypto market may soon explode in value.
Related reading | Five Signs That Bitcoin Bottom Is In
What is even more shocking is that the total cryptocurrency market cap barely represents all of the value in the crypto space today. NFTs aren’t included, new DeFi projects aren’t quite added, and who knows what else is missing that lurks in the shadows of cryptocurrency.
At a target of around $10 trillion in value over the next year or so, it would be hard to deny that the asset class at that point has been overstated, and that could lead to a significant correction and Bear Market.
Featured image from iStockPhotos, Charts from TradingView.com