Benzinga - Pseudonymous crypto expert Credible Crypto has drawn parallels between Bitcoin's (CRYPTO: BTC) current market structure and its performance in the couple of months before its all-time high made in November 2021, suggesting a potential bullish trajectory for the leading cryptocurrency.
Credible Crypto highlighted the present market structure of Bitcoin closely resembles its stance when it was priced between $16,000 to $18,000.
Back then, this setup was followed by a staggering 60-day rally, propelling Bitcoin to approximately $60,000.
The analyst emphasized the significance of fractals in predicting market movements, stating, "Fractals aren't guarantees of anything — but they often repeat when the goal and technical context is the same."
The current and past structures share similarities, both showcasing sideways, ranging structures after a clear uptrend and a near-vertical rally from a significant low.
Credible Crypto believed that the primary objective in both scenarios is re-accumulation, given the identical technical contexts.
He noted, "In both cases, no significant HTF market structure has yet been broken."
Despite some market participants anticipating a downturn, the previous breakout from the accumulation range led to a 200% surge in Bitcoin's price within two months.
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Drawing from this, Credible Crypto posits that a mere 120% rally post the breakout of the current accumulation range would be sufficient to set new all-time highs for Bitcoin.
Moreover, the timeline for this potential rally in 2023 is twice as long, spanning four months.
The analyst remained optimistic about Bitcoin reaching new all-time highs this year, stating, "So do I think we can still make new ATH this year for Bitcoin? Absolutely."
While the fractal analysis isn't the sole basis for this prediction, it offers an alternative perspective for those skeptical of other arguments presented by the analyst.
Credible Crypto also set a clear threshold for this prediction's invalidation, marking $24.8k as the critical level.
If Bitcoin's price drops below this point, the analyst suggests a re-evaluation of the market stance, cautioning against extreme bearishness.
"Until then there is no reason to go max bearish at what is, arguably, a point of maximum opportunity and risk/reward with clear invalidation," the analyst stated.
Meanwhile, the overall cryptocurrency market has experienced a significant drop in recent days, seemingly in response to the Federal Reserve's indication of an interest rate increase.
This has led to the leading 10 digital currencies registering substantial losses.
Prominent digital currencies such as Ethereum (CRYPTO: ETH), Ripple (CRYPTO: XRP), Solana (CRYPTO: SOL), Dogecoin (CRYPTO: DOGE), and Shiba Inu (CRYPTO: SHIB) have seen their values decrease by 9%, 16%, 12.5%, 15.5%, and 22%, respectively, in the past week.
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