Bitcoin has seen incredibly mixed price action in recent times, with its rally to $10,400 invigorating buyers while its decline from these highs has bolstered bulls.
Although its mid-term trend remains incredibly unclear, there are a few technical factors that offer insight into the cryptocurrency’s near-term outlook.
One such pattern suggests that the crypto is currently in a precarious situation, as a bear-favoring triple top formation is currently in play.
There is a diagonal trendline that could help invalidate this pattern, and one analyst is even noting that “all bets are off” for Bitcoin if it breaks $10,500 – suggesting this will be the level that catalyzes a massive upswing.
Beware the Triple Top: Bitcoin’s Rejection at $10,400 Puts Bearish Pattern in Play
Yesterday morning, Bitcoin lost the immense buying pressure that helped send it to highs of $10,400.
The break below $10,000 triggered a cascade of liquidations that sent it down to lows of $8,600 on BitMEX – leading roughly $100 million in positions to be liquidated.
This also marked the third clear rejection that the benchmark cryptocurrency has seen since it declined from 2019 highs of $13,800.
One analyst is saying that a bear-favoring “triple top” formation is now in play, which could lead it significantly lower in the weeks and months ahead.
“BTC update: We now got a triple top in play. That makes the support areas I outlined even more attractive as a buy,” he noted while pointing to the chart seen below.
There is one technical factor that could help invalidate this formation and lead the cryptocurrency higher.
Another popular analyst spoke about this in a recent tweet, pointing to a recently formed diagonal trendline as one factor that could help guide it higher in the hours and days ahead.
“BTC – Diagonal & EQ still holding as Support. h4 closed above a key S&R at $9,580s. First area of interest is $9,790. Time to grind it back up to 5 digits?”
Here’s the Level That Could Spark a Massive BTC Movement
$10,500 is undoubtedly a critical level that buyers need to surmount if they want to spark any type of macro uptrend.
One pseudonymous trader mused the importance of this level, explaining that “all bets are off” once $10,500 breaks – eluding to the fact that a break above this level could spark a massive uptrend.
“I’m not saying it happens right now, but when 10.5k breaks, all bets are off,” he noted while pointing to the below chart.
All factors considered, now does appear to be a critical time for Bitcoin.
How it trends in the coming days could determine where the entire crypto market moves throughout the rest of the year.
Featured image from Shutterstock.
BTCUSD, BTCUSDT, XBTUSD