After a sharp sell-off of Bitcoin and the synthetic cryptocurrency market, buyers stepped up yesterday and supported the market, allowing BTC and most other altcoins to distance themselves from their recent lows. .
This will help the market establish some strong support above the recent lows, and show that the sell-off is nearing the final stage.
However, an interesting phenomenon is currently occurring on the trading volume of the 6-hour candle and seems to indicate that the market is still in control of the bear.
The technical model shows that Bitcoin can continue to decline
At the time of writing, Bitcoin is trading at $ 8,600, marking a noticeable decline from the recent high of $ 8,900 set today.
Bitcoin price today | Source: Coinmarketcap
This ongoing downtrend started on Sunday before Bitcoin faced a strong rejection at $ 10,000, then plunged the cryptocurrency down to its key support at $ 9,500. .
The drop below this level has catalyzed a strong bearish movement that sent shockwaves across the aggregate market and led Bitcoin to confirm a strong bearish technical model.
Veteran trader Peter Brandt talked about this technical model in a recent tweet, pointing to a chart showing BTC could plummet to $ 8,000 support level because it formed a head and shoulders pattern (H&S ) reverse discount.
The fact that BTC could not rally in the face of the advance by Gold prices and drop in equities was a “tell” pic.twitter.com/GpCiXjB5cD
– Peter Brandt (@PeterLBrandt) February 26, 2020
“The fact that BTC cannot rise before the rise in gold prices and stock prices fall, this is something worth noting.”
This trading volume may indicate that the bears are in control
The head and shoulders pattern that Bitcoin has recently confirmed is not the only factor against the bulls at the moment, as a bearish volume of this strong volume indicates that the bears are tightly controlling the market. tight.
Well-known crypto analyst Big Chonis talked about this in a recent tweet. He pointed to a chart and said that the candle 6 hours earlier had closed with very high selling volume.
– Big Chonis Trading (@BigChonis) February 27, 2020
“I don't like the way the last 6-hour candle ends the day with the highest volume.”
BTC is still trading on the long-term growth curve
While the downtrend may continue for the next few days, it is important to note that Bitcoin is still trading on the important growth curve. The current decline could mark a consolidation before Bitcoin begins to move higher.
Well-known analyst Dave the Wave talked about this in a recent tweet, to alleviate all investor worries.
Zooming out, price is exactly where it is meant to be (was predicted to be on the basis of the log growth curve and the lengthening cycle). The macro picture should serve to allay anxieties (and restrain excitements) with the shorter term volatility…. pic.twitter.com/qv80Xqu3WT
– dave the wave (@davthewave) February 27, 2020
"Shrinking, the price will move back to where it was expected (move to the log growth curve and the extended cycle). The macro picture will ease worries (and curb excitement) in the short-term fluctuations. "
Unless the bulls can reclaim the $ 9,000 level decisively within the next few hours, it is likely that Bitcoin will continue to make further corrections, which could be driven by the formation of the pattern. The head and shoulders and the strong selling volume of the candle fell.
Bitcoin Magazine | Newsbtc
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