Your favorite crypto news blog

4 Indicators Show Bitcoin Has a “High Chance” of Falling in Next 2 Weeks: Analyst

Bitcoin 2020/06/01 12:00 by Nick Chong
Bitcoin has mounted a strong recovery since the lows seen last week. The leading cryptocurrency traded as high as $9,750 on Saturday, over 13% higher than last weekend’s lows. Even still, there remain textbook technical indicators suggesting there is a “high chance” BTC sees a correction in the coming weeks. According to the analyst that made this observation, this may be the largest correction Bitcoin has seen since March’s capitulation event. Watch Out: Bitcoin Could Fall in the Next 2 Weeks BTC may have bounced strongly since last week’s correction lows, but the asset’s weekly chart is printing four textbook signals indicative of an impending correction. A top analyst recently shared these signals: The Tom Demark Sequential has printed a “9” candle. The time-based indicator prints “9” or “13” candle near or at inflection points in an asset’s trend. This latest “9” suggests an end to the Bitcoin rally that has transpired over the past few months. Hidden bearish divergences have formed between the Klinger indicator and the price. The Stochastic Relative Strength Index (RSI) has seen a bearish cross for the first time since February. Bitcoin formed a “Heikin-Ashi spinning top” pattern last week, which suggests a likely trend reversal. Chart from Crypto Hamster (@CryptoHamsterIO on Twitter). Adding to the confluence, there remains sell-side resistance on Bitfinex’s BTC/USD order book. Below is a chart of recent BTC price action alongside the Order Book Dominance Bands indicator, which shows there is resistance from investors to let the asset pass the low-$10,000s. The chart is significant because the order book data accurately predicted the tops of previous BTC rallies. Image of BTC’s price over the past few weeks alongside the Order Book Dominance Bands indicator. Chart shared by analyst Coiner-Yadox (@Yodaskk on Twitter). Related Reading: Ethereum DeFi Nears $1 Billion Milestone Again, and That’s Big for the ETH Bull Case Long-Term Outlook Still Bullish The case may be growing for Bitcoin to correct in the short term, but that’s not to say that the uptrend formed from the $3,700 lows is over. Far from, some analysts have said. As reported by NewsBTC previously, BTC just closed the price candle for May above the crucial $9,360 level. This is “incredibly significant for bulls” because the low-$9,000s acted as macro resistance for BTC on multiple occasions over the past year. As one analyst remarked in reference to the chart below: “We’ve not had a Monthly close above 9360 in nearly 12 months. Rejections from this level have led to tests of $6k and eventually $3k.” BTC price chart from a crypto trader “Cold Blooded Shiller” (@ColdBloodShill on Twitter). When Bitcoin failed to surmount this level in February, prices crashed to $3,700. Furthermore, when BTC rejected this level in 2018, there was a brutal bear market to $3,150 in the ten months that followed. The fact that BTC has managed to clear this level suggests that the macro bear trend is over, leaving room for the cryptocurrency market to run higher. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps Featured Image from Shutterstock

0 Like(s)

You should also read...

Bitcoin 05/06/20 02:00 by Nick Chong
Bitcoin Rallied 300% Last Time This Signal Appeared. It Just Happened Again
After rallying as high as $10,400 earlier this week, Bitcoin plunged by nearly $2,000 in 24 hours on BitMEX. It was a move that liquidated over one hundred million worth of derivatives positions. Anal...
Read More
Bitcoin 10/07/20 02:00 by Nick Chong
By Definition, Bitcoin Is Still in a Bear Market: Why This Will Soon Change
Bitcoin has rebounded strongly since the capitulation lows seen in March. Since March 13th, in fact, the cryptocurrency has gained in excess of 150%, having rallied from $3,700 to $9,250. With this, m...
Read More
Bitcoin 13/07/20 13:00 by Yashu Gola
This Historically Accurate Signal Suggests a Bitcoin Rally to $13K in Q3
Bitcoin is trading almost 12 percent below from its local top near $10,400, but a historically accurate technical indicator hints a trend reversal. The pattern formed on Monday as the short-term movi...
Read More
Bitcoin 20/07/20 12:00 by Nick Chong
The Signal That Preceded 2019’s Bitcoin Correction Is About to Return
Somehow, Bitcoin’s price action has become even tighter over the past days than it has been over the past two months. If you zoom out and look at BTC’s macro chart, it may seem like the as...
Read More
Altcoins 09/08/20 12:00 by Nick Chong
Here’s Why Ethereum Holding Above $400 Could Unlock a Massive Surge
For the umpteenth time in the past week, Ethereum was rejected at the critical $400 resistance during Saturday’s rally. The cryptocurrency failed to decisively hold above that level despite the ...
Read More