Bitcoin’s recent surge up to highs of over $10,800 drastically shifted the overall market sentiment and had led many investors and analysts alike to believe that BTC was highly likely to move past $11,000.
BTC’s subsequent drop from these levels, however, invalidated this perceived bullishness, and now a prominent analyst is explaining that Bitcoin is currently trading within a bearish descending triangle on a macro time frame, which may mean that another drop is imminent.
Bitcoin Plummets 4%, But Finds Stability Around $10,400
At the time of writing, Bitcoin is trading down nearly 4% at its current price of $10,450, which marks a significant drop from its 24-hour highs of just below $11,000 that were set yesterday.
Yesterday’s rejection marks the second time in the past week that it was rejected in the upper-$10,000 region, which may signal that this is an insurmountable resistance level that could send it reeling significantly lower in the near-future.
Chonis Trading, a popular crypto analyst on Twitter, explained in a recent tweet that Bitcoin’s daily close yesterday marked a strong rejection of the upper-$10,000 region, which may spell trouble for it in the near-future.
“$BTC – daily candle closed with a strong rejection of intraday highs…Middle BB held support when tested…FIB retrace currently at 38.2%,” he noted while pointing to the below chart.
$BTC – daily candle closed with a strong rejection of intraday highs…Middle BB held support when tested…FIB retrace currently at 38.2% #bitcoin pic.twitter.com/6Bi4DNw76d
— BIG Chonis (@BigChonis) September 7, 2019
Will a Massive Descending Triangle Force BTC Lower?
In recent times many analysts have been pointing to a large triangle formation on Bitcoin’s macro-price chart as one potential catalyst for another massive upwards movement in the near-future, but now one analyst is noting that this triangle is actually a bearish formation.
Peter Brandt spoke about this in a recent tweet, explaining that although he is currently long on Bitcoin, it’s currently trading within a descending triangle, which typically results in a downwards break.
“Bitcoin meets the definition of a descending triangle. Don’t let newbie chartists tell you different. Right-angled triangles imply (but do not demand) a resolution thru the horizontal boundary,” he noted.
Bitcoin meets the definition of a descending triangle. Don't let newbie chartists tell you different. Right-angled triangles imply (but do not demand) a resolution thru the horizontal boundary. $BTC pic.twitter.com/DIW1BpMSCV
— Peter Brandt (@PeterLBrandt) September 7, 2019
Assuming that this triangle is the main impetus that leads Bitcoin’s price action in one direction or another, investors and analysts alike will soon know whether or not it is ready to journey upwards, or if significantly further losses are imminent.
Featured image from Shutterstock.
