A Bitcoin fractal is a term used to describe the repetitious and self-similar nature of price movements in the cryptocurrency markets. Fractals are often used by traders to identify market patterns and predict future price movements.
The Bitcoin market is notorious for its volatility, which can make it difficult to predict price movements. However, many traders believe that the market behaves in a fractal-like manner, meaning that certain patterns tend to repeat themselves.
One popular fractal pattern is known as the “Bart Simpson” fractal, which occurs when the price of Bitcoin makes three consecutive higher lows followed by a higher high. This pattern is believed to be an early indicator of a bullish trend reversal.
Another popular fractal pattern is the “head and shoulders” fractal, which is often seen as a bearish reversal signal. This pattern occurs when the price of Bitcoin makes three consecutive higher highs followed by a lower low.
While fractals can be helpful in identifying market patterns, it’s important to remember that they are not perfect. Many fractal patterns never materialize, and even when they do, there’s no guarantee that the predicted price movement will occur.