The post Bitcoin Dejavu Moment in Play-A Confirmation Could Lower the Price to Nearly $20,000 appeared first on Coinpedia Fintech News
The recent upswing in the Bitcoin price flashes bullish signals while the bearish momentum seems to have ceased. The global market cap also is approaching crucial zones around $2 trillion, while the Bitcoin price is heading toward $29,000. A spectacular bullish layout appears to have been laid out over the crypto space, following which the majority of the tokens may undergo a massive price action at the earliest.
Meanwhile, some possibility of a bearish pullback is also expected as the price pattern appears to have been replicating the previous trend. During 2018, the BTC price formed a triple-top pattern at appeared around the 2018 tops, which resulted in a gigantic bearish trend. The price slumped hard further and dropped close to $3000 from levels around $19,000 to mark the bottom of the rally.
A similar pattern is believed to have formed presently, where-in the below-mentioned conditions also appear to have been met :
- The largest trading volumes are at the first top, then trading volumes decrease despite the price rise
- The second top is the lowest of the three to confuse market participants
- At the third top, a ‘false breakout’ occurred to knock out stop orders of shorts that were hiding behind the previous highs
- The final confirmation of the pattern will be when the price consolidates below the base, below $26630
The pattern is believed to be confirmed if the price slumps and hits the first target of $24,600 to $25,000. However, if the fractals from 2018 become valid, then the Bitcoin (BTC) price is expected to fall around $20,300. Interestingly, a CME gap is present at these levels which may also be filled.