- Bitcoin saw some immense overnight turbulence that caused its price to plummet from highs of nearly $9,900 to lows of $9,400 on many exchanges
- This movement liquidated over-leveraged long and short-positions, and further confirmed that BTC is caught within a tight trading range
- Despite its current stability, one pattern now indicates that Bitcoin is positioned to make a massive movement in the near-term
- One analyst believes that this movement will favor sellers, as a pattern he is watching points to the crypto seeing 18 weeks of blood
Bitcoin has continued consolidating around $9,700 in the time following its recent “Darth Maul” candle that was formed late-yesterday.
This candle – aptly named after the red double-sided saber of a popular sci-fi character – was formed after Bitcoin surged to highs of nearly $9,900 before plummeting down towards $9,400.
After tapping these lows, the crypto quickly rebounded to $9,700 – the level at which it has been trading at for over a week now.
Analysts are growing cautious about the cryptocurrency’s near-term trend, however, as one recently explained that he is anticipating at least 18 weeks of bearish price action before BTC is able to kick off a strong uptrend.
This forecast comes due a historically accurate pattern that has predicted many of the benchmark crypto’s previous price trends.
Bitcoin Consolidates Above Key Trendline as Near-Term Trend Grows Unclear
At the time of writing, Bitcoin is trading down marginally at its current price of $9,720.
The sharp movement seen yesterday evening was likely a liquidity grab from some large market participants who moved to liquidate overleveraged traders.
The cryptocurrency’s trend has grown increasingly unclear throughout the past week, with buyers and sellers largely reaching an impasse in the time following last week’s fleeting rally to $10,400.
How it trends in the near-term will likely be based largely on its reaction to a trendline that it is currently trading above – as reported previously by Bitcoinist.
One analyst pointed to this line – which has been formed since March – and noted that a clean break below it would open the gates for Bitcoin to decline to the $7,000 region.
“Decision day has been postponed – slowly but surely reaching apex of greater trend…”
This Pattern Signals BTC is in for Months of Red
Another popular cryptocurrency analyst with a track record of accuracy recently put forth a grim path forward for Bitcoin.
He explained that a momentum indicator on BTC’s Gaussian channel is about to turn down, signaling that it could see several months of weakness.
“Momentum on the Gaussian channel about to turn down. Expecting at least 18 weeks of red,” he said while pointing to the chart seen below.
He also explained that Bitcoin’s Gaussian trends do tend to turn red roughly one year after it peaks – further supporting this potential trend shift.
Featured image from Shutterstock.