Dramatic $17,000 Bitcoin Peak Possible Within Weeks Based on Halving Fracal

If a fractal appears in Bitcoin price charts that corresponds to the previous halving breakout after consolidation, the cryptocurrency could continue to rise from here.

If the rally follows a similar path, the goal would set the highest cryptocurrency valuations at $ 15,000 to $ 17,000 before peaking.

Bitcoin breaks out: what happens next will be quick and angry

Bitcoin prices exploded early last week after gold set a new record and the government pledged another $ 1 trillion in stimulus spending.

Inflation in the money supply has led to a flight into hard assets such as precious metals and cryptocurrency. Digital gold and its physical counterpart have both benefited from the dollar's recent weakness.

Bitcoin deserves its comparison with the precious metal due to several key similarities. For example, gold has a limited supply and the cryptocurrency is digitally encoded so that only 21 million BTC will ever exist.

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This offer is slowly being tricked over the years. Every four years, the amount of BTC released on the market is halved in an event called halving.

There are several supply-based theories that attempt to value the asset in the future due to its scarcity. Those who follow this belief expect past cycles to repeat and the value of the asset to increase as the recent event passed.

But will things really go the same way? A pseudonymous trader has discovered a potential fractal The playoff indicates a peak that is much higher than the current level. And it can go a lot faster than anyone is prepared for it.

Bitcoin diagram btcusd

BTCUSD 2016 Post-Halving Fractal | Source: TradingView

Fractal targets after halving between $ 15,000 and $ 17,000 BTC in less than a month

Analysts often look at past Bitcoin cycles to get an overview of future price movements. A trader did just that and came up with a compelling fractal from the last block reward halving. This took place in 2016 and brought Bitcoin to the biggest bull run ever.

The same could happen again according to technical analysis and fundamental data.

Bitcoin diagram btcusd

BTCUSD 2020 Post-Halving Fractal | Source: TradingView

According to the fractal, this pump may just be operating, with a proposed target of between $ 15,000 and $ 17,000. What is really shocking is the timing of the target.

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The fractal indicates a quick and impulsive breakout at this level within the next few weeks and before the end of August.

Bitcoin diagram btcusd

Bitcoin Supply Percent Active 2+ Years | Source: glassnode

Other basic data suggests that the cryptocurrency is at a similar point in its market cycle. If this is the case and the rising valuations of the asset are due to the halving effect and digital scarcity, things can go a similar way.

Fractals are a sensitive issue among traders. So take the targets with a grain of salt.

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