Bitcoin
This Pattern Suggests Bitcoin May Soon Reel Lower and Tap Fresh Lows
Cole Petersen | Sep 23, 2020 | 18:00
- Bitcoin is currently caught within an incredibly tight bout of sideways trading, with its price mainly hovering around $10,500 for the past couple of days
- Overnight, bears did attempt to spark a sharp downside move when they pushed the crypto as low as $10,400
- This dip was fleeting, as bulls quickly propelled it back up to its current price level
- BTC’s inability to form a decisive trend comes as it trades between two crucial levels – its bedrock support at $10,000, and its heavy resistance at $11,000
- Which of these levels is broken first should offer significant insights into its near-term trend
Bitcoin and the entire cryptocurrency market are currently lacking direction. While BTC hovers within the mid-$10,000 region, most altcoins are also consolidating as investors closely watch to see how the benchmark crypto trends next.
While speaking about the cryptocurrency’s current market structure, one analyst observed that the rejections it has posted with each attempted rally may indicate that downside is imminent.
He put forth a chart that specifically seems to indicate that a decline down towards its range lows at $9,800 is imminent.
This decline would strike a serious blow to the crypto’s near-term outlook, and a loss of this level could catalyze a far-reaching downtrend.
Bitcoin Continues Consolidating as Bulls and Bears Reach an Impasse
At the time of writing, Bitcoin is trading down marginally at its current price of $10,500.
This is around where it has been trading throughout the past couple of days, with each attempt to rally higher or break lower being thwarted. This has created an intense consolidation phase, and it still remains unclear as to just how long it may last.
There are many hurdles in front of the cryptocurrency at the moment, with the selling pressure between $11,000 and $11,300 proving to be insurmountable on multiple occasions.
It remains unclear as to what could spark a movement past this level.
Analyst: BTC’s Market Structure Rapidly Beginning to Favor Bears
While speaking about Bitcoin’s short-term technical outlook, one analyst observed that a sweep of its range highs following an aggressive downwards move indicates that further losses are imminent.
The chart he puts forth indicates that this extension of its downtrend may lead it towards $9,800.
“BTC: A sweep of the highs after an aggressive down move is a high probability short towards unswept lows. Invalidation above local range high,” he explained.
Image Courtesy of George. Chart via TradingView.
How Bitcoin trends in the near-term will have major implications for the rest of the cryptocurrency market, with altcoins mostly consolidating as they await some guidance.
Featured image from Unsplash. Chart via TradingView.
