Analyst: Bitcoin re-accumulation phase has begun, but it must drop to this key price first

The Bitcoin price tends to move in a trend that deals maximum pain for both bulls and bears in the market - and this time is seemingly no different.

Based on previous fractals, one popular cryptocurrency technical analyst said that the Bitcoin price is more likely to pull back to the low $5,000s to establish a new short-term bottom.

In extended bear or bull markets, the Bitcoin price tends to move in fractals.

A fractal often forms after the Bitcoin price achieves a short-term high because it brings more uncertainty into the market.

The reaccumulation phase of Bitcoin has begun after the price dropped to as low as $6,410 and demonstrated a clear inverse head and shoulders formation in a large time frame.

In early 2018, the Bitcoin price formed an IHS and rallied upwards.

Eventually, the upsurge resulted from the IHS broke down which then led to bitcoin testing the low $3,000s area in December 2019.

As seen above, the Bitcoin price was rejected at $9,200.

Although it has been volatile in the past week, the Bitcoin price has been unable to move out of a tight range between $8,500 to $8,700.

After four days of uncertainty and tightly traded ranges, the price of Bitcoin is at a critical juncture that could establish the direction it goes over the next three to six months.