Publicly available long video traces encoded according to H.264/AVC were analyzed from the fractal and multifractal points of view. It was shown that such video traces, as compressed videos (H.261, H.263, and MPEG-4 Version 2) exhibit inherent long-range dependency, that is, fractal, property. Moreover they have high bit rate variability, particularly at higher compression ratios. Such signals may be better characterized by multifractal (MF) analysis, since this approach describes both local and global features of the process. From multifractal spectra of the frame size video traces it was shown that higher compression ratio produces broader and less regular MF spectra, indicating to higher MF nature and the existence of additive components in video traces. Considering individual frames (I, P, and B) and their MF spectra one can approve additive nature of compressed video and the particular influence of these frames to a whole MF spectrum. Since compressed video occupies a main part of transmission bandwidth, results obtained from MF analysis of compressed video may contribute to more accurate modeling of modern teletraffic. Moreover, by appropriate choice of the method for estimating MF quantities, an inverse MF analysis is possible, that means, from a once derived MF spectrum of observed signal it is possible to recognize and extract parts of the signal which are characterized by particular values of multifractal parameters. Intensive simulations and results obtained confirm the applicability and efficiency of MF analysis of compressed video.