For some reason or another, one of the most popular forms of analysis in the Bitcoin (BTC) market is the use of fractals, which tries to see if historical patterns are playing out on current charts. According to one TradingView analyst that goes by “TradingShot“, the one-day chart for the leading cryptocurrency is currently looking like the chart of gold, but on a much shorter time frame.
In a recent post, TradingShot noted that for the past year or so, Bitcoin’s one-day chart has effectively followed gold’s chart from 1980 to 2000. In that time frame, gold reached a historic peak after the 1970s bout of inflation, rapidly fell in 1982, then traded in a tight range, holding over key price levels, until 1997, which saw gold fall to lows not seen in decades. Then, in 1999, gold spiked, rallying massively. Although this sounds nothing like Bitcoin, BTC went through the exact same cycle of a rapid plunge off highs, a long period of range trading, a massive downturn, and then a strong recovery.