Bitcoin (BTC) price tumbled by 20% over the weekend with over $100 billion wiped off the market cap, but it is not all lost for the bulls who can still regain control over the market. One fractal pattern suggests Bitcoin’s drop to $43,000 can be the bottom.

Bitcoin Fractal Pattern

The current correction from the November 10 all-time high resembles the price correction from the previous all-time high established back in April 2021. The first evidence that the recent sell-off is just a pullback against the long-term bullish cycle is that the price is currently bouncing off the 0.618 Fibonacci retracement of the last up-leg.

The sell-off from April’s high found a bottom at exactly the golden ratio 0.618 of the previous up-leg started with the March 2020 low.

The second evidence of a local bottom is that the 50 weekly moving average provides a strong support level that the bears couldn’t overcome, not even during the previous correction.

Thirdly, the $42,000 level is a strong pivot point that acted as a strong S/R level in the past.

By comparison, April’s sell-off lasted for 14 consecutive weeks, and the bullish momentum only returned in mid-July when the RSI crossed above the mid-level 50. If history is to repeat itself, we can expect some consolidation through the end of the year and the first month of 2022 before the next rally begins. 

However, this was most likely a Covid induced pullback such as the crash in March 2020, as many assets, including the stock market, faired badly last week. Since we expect to see $100,000 for our peak in December/January, this will most likely be a short pull back with an aggressive recovery. The early signal that the bulls are back in control is when the RSI breaks above the mid-level 50.