Bitcoin may head higher in the coming sessions based on its price action’s similarities with a fractal from June 2020.
First spotted by TradingShot, an independent trading signals provider, the fractal boasts about a support level near $9,000 that stood firm between June 25 and July 21 this year. Traders attempted to break below the floor for 26-days straight but failed every time owing to a higher buying sentiment around it.
Meanwhile, the same period saw a so-called “LMACD Squeeze.”
Strong Bitcoin Accumulation
In retrospect, LMACD stands for Logarithmic Moving Average Convergence Divergence, a technical indicator that shows the relationship between two moving averages of an asset’s price. Meanwhile, the term ‘Squeeze’ points towards a big breakout move, based on Bitcoin’s historical reaction to the growing proximity between Signal Line and MACD output.
The last occurrence of LMACD Squeeze coincided with Bitcoin’s consolidation above the $9,000 level. Later, the cryptocurrency underwent a massive breakout move towards $10,500.