Bitcoin has posted some mixed price action as of late, offering few insights into the strength of its current market structure
Analysts do believe that the recent price action following its latest rejection at $10,000 struck a blow to its underlying strength
This may be causing the benchmark crypto to form a clear top formation that suggests a violent downturn is imminent
This weakness could also be compounded by the recent break below a key ascending trendline that was previously guiding its uptrend
Bitcoin has continued trading around $9,400 overnight, struggling to garner any clear momentum as its buyers and sellers both reach an impasse.
It is important to note that recent events taking place with regards to its price action have offered some insight into the strength of its underlying market structure.
The latest rejection at $10,000 caused it to dip as low as $9,000. Although buyers quickly stepped up and propelled it back up to its current price region, this downside movement marked a break below a multi-month trendline.
Furthermore, an analysis of the cryptocurrency’s Renko chart also points to underlying weakness, as it suggests that BTC has formed a decisive top that will be followed by further downside.
Bitcoin Continues Trading Beneath Key Trendline as Selling Pressure Begins Mounting
At the time of writing, Bitcoin is trading down by just under 1% at its current price of $9,400.
This marks a slight decline from daily highs of over $9,500 but is around the price point at which it has been trading at throughout the past few days.
Analysts are widely noting that the cryptocurrency is currently weak due to the consecutive rejections around $10,000 that have been posted throughout the past several weeks.
Although in the past these rejections have done little to alter Bitcoin’s underlying market structure, the latest rejection it posted caused it to decline beneath a key ascending trendline that had been guiding its multi-month uptrend.
One trader spoke about this in a recent tweet, noting that it is vital for buyers to recapture the $9,500 region in order for them to have a chance at climbing back above the trendline.
“Short term bias is bearish as long as previous support is resistance – vital for bulls to reclaim 95xx,” he explained while pointing to the chart seen below.
Image Courtesy of Teddy. Chart via TradingView
This Chart Suggests BTC Has Formed a Mid-Term Top
This latest rejection also formed a classic top formation candle on the cryptocurrency’s Renko chart.
As such, unless buyers step up and send Bitcoin surging higher, this formation signals that a downtrend is imminent in the days and weeks ahead.
“Without compounding the obvious, without a spike to undo the developing BTC divergence, this is the top,” one popular trader said while offering the chart seen below.
Image Courtesy of Cold Blooded Shiller. Chart via TradingView
Featured image from Shutterstock.
Charts from TradingView. origin »
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Over the past day or two, the price of Bitcoin has continued to show signs of strength, rallying as high as $6,800 on Tuesday afternoon (TradingView data) as global markets begin to show signs of recovery after weeks of downward price action.
Bitcoin’s recent price action has made it incredibly unclear as to where the cryptocurrency could be positioned to move next, with its recent drop below $10,000 suggesting that bulls do not have enough strength to surmount the resistance that exists around this price level.
Ethereum’s price action has been largely guided by that of Bitcoin over the past several days, and ETH’s bulls are now showing some signs of losing strength as the crypto inches lower today. This potential bearishness comes as the crypto sees an influx of network activity and heightened trading volume.
The price of Bitcoin has been through numerous market cycles. Very often similarities arise between current and previous cycles. These similarities allow us to make predictions about future price movements.
After incurring a sudden influx of buying pressure that sent Bitcoin’s price surging to highs of nearly $10,500, BTC has been unable to maintain its upwards momentum and has now retraced back towards its key support level at $10,000.
Litecoin’s recent halving event had led many investors and analysts alike to believe that it was poised for a large bull run throughout the second half of 2019, but LTC’s lackluster price action as of late has dissolved all the hype that was previously surrounding it.
Bitcoin price has very clearly created a rising wedge as short-term price action tests the 0. 5 fib level between $13,000 and $14,000 twice over the last 20 Days. The question remains as to whether the strength of the current bullish trend will be enough to propel price levels upwards out of the current rising wedge, which is notoriously one of the most reliable bearish trading patterns.
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Bitcoin is retracing today after recording price increases during most of this week. Today’s drop has so far been on low volume showing little strength behind it and seems to be meeting support at the 50 EMA.
After weeks of bouncing around in the $6,000 to $6,600 range, BTC broke out to as high as $7,000 on Wednesday morning to the surprise of many investors. Oddly enough, many analysts and industry leaders were able to pinpoint a single catalyst for this bout of positive price action.
Bitcoin broke below its key support at $7850 yesterday and experienced an even further drop. Price action is currently trading around the $7550 mark with the 100EMA acting as some support. Volume has been dropping off which shows the market could be taking this price point seriously.
Bitcoin (BTC) currently follows a clear symmetric correction replicating similar price action as during the 2017 rally except in the opposite direction. The time frame for these moves also appears to be similar.
Ethereum Classic (ETC) has shown strong signs of strength since the recent Coinbase announcement. Last week, we witnessed how Ethereum Classic (ETC) was one of the first few coins to stay in the green as the rest of the market tumbled with a weak Bitcoin (BTC).
In the previous BTC-USD market analysis, we discussed a macro pattern forming, called a “symmetrical triangle. ” A symmetrical triangle (shown in red) is a directionally agnostic consolidation pattern.
Bitcoin price started a fresh upward move above $100,000. BTC is facing resistance at $103,000 and might aim for an upside break. Bitcoin started a decent upward move above the $100,000 zone. The price is trading below $103,200 and the 100 hourly Simple moving average.
Bitcoin price settled above the $100,500 resistance zone. BTC is consolidating gains and might aim for a fresh increase above the $105,000 zone. Bitcoin started a downside correction from the $106,800 zone.
Bitcoin price started a short-term downside correction from the $106,250 zone. BTC is consolidating above $100,000 and might aim for a fresh increase. Bitcoin started a downside correction from the $106,250 zone.
Bitcoin price is gaining pace above the $100,000 zone. BTC is rising and might accelerate higher if it clears the $102,000 zone. Bitcoin started a decent increase above the $100,000 zone. The price is trading above $100,500 and the 100 hourly Simple moving average.
Bitcoin price is consolidating losses below the $95,500 zone. BTC is showing bearish signs and might struggle to recover above the $95,800 level. Bitcoin started a recovery wave from the $91,150 zone.
