Bitcoin bore witness to some intense volatility today that came about after the cryptocurrency’s price rocketed past $10,000 before facing yet another harsh rejection that led it back into the $9,000 region.
This price action has once again resulted in BTC falling into the same consolidation channel that it was previously caught within, and its mid-term trend still remains incredibly unclear.
This recent volatility marked the latest in a series of so-called “Darth Maul” candles that are orchestrated in an effort to flush out over-leveraged positions.
BTC now appears to be engaged in an intense attempt to shatter a multi-year trendline that has been guiding it lower, and analysts are watching to see how it reacts to a few key moving averages for insight into where it may go next.
One trader is even noting that one technical pattern suggests that Bitcoin is positioned to see some major upside is a teeters on the brink of entering a full-blown bull market.
Bitcoin Fighting a Multi-Year Trendline as Selling Pressure Mounts
At the time of writing, Bitcoin is trading up just under 1% at its current price of $9,870. This marks a notable climb from daily lows of under $9,700, but a slight decline from highs of just below $10,100.
The selling pressure laced between BTC’s current price and its key high time frame resistance at $10,500 has proven to be insurmountable on three occasions over the past six months.
One analyst spoke about the importance of $9,820, explaining that this marks the upper boundary of a trading range formed over the past 43 days.
“BTC trying to find acceptance above 43 day range at 9820. Above all MA’s on 1W and 1D levels. Trending up since March lows,” the trader explained.
The same analyst also went on to note that the three year descending trendline that the crypto has been caught beneath exists around $10,500.
He believes a firm and decisive break above this level could send Bitcoin to its 2019 highs of $13,800.
“Fighting 3 year down trendline. 10.5k remains a key area that can send it to 19′ highs. Trying to climb over downtrend line from Dec 17′ ath’s and LH’s.”
BTC is About to Post a Bull Trend Signal on This Key Indicator
In addition to showing signs of over strength for the reasons mentioned above, the benchmark cryptocurrency could also be on the cusp of rallying based on it posting a bull trend signal on its Gann Fan.
One cryptocurrency analyst spoke about this in a recent tweet, offering a chart showing the clear signal.
“Gann Fan 1/1 Bull Trend signal for BTC (2/1 Break out would be the Bull Trend confirmation).”
How BTC trends in the coming days ahead should provide valuable insight into whether or not its long-held consolidation phase will ultimately result in a bull-favoring movement.
Featured image from Shutterstock.
No comments:
Post a Comment