It is important to note that after this rally, BTC made many attempts to overcome the range's resistance, but all of them were strongly rejected.
This has led many analysts to note that a significant malfunction could be imminent, and Bitcoin will fall back to its yearly lows.
Bitcoin entered the consolidation phase after being strongly denied by resistance
At the time of writing, Bitcoin is trading at $ 6,690, marking a slight decline from the high of $ 6,900 set yesterday.
Price of BTC today | Source: Coinmarketcap
Every attempt to breakout above the $ 6,900 area is met with strong selling pressure, with the rejection seen yesterday, marking the third time the bulls have been denied at this price zone in the past. many days.
The denial here has made famous analyst Michaël van de Poppe that BTC will see a strong move to $ 4,800 in the near future.
A swift rejection here at $ 6,900.
It can still hang around this area for a bit. If we break back above $ 6,650, I'm expecting another tap of the $ 6,900-7,000 area.
However, all-in-all, remaining to expect $ 5,400 and $ 4,800 to be tested in the coming period. pic.twitter.com/2eiAHUEadO
– Crypto Michaël (@CryptoMichNL) March 25, 2020
“A strong denial at $ 6,900. It is still possible to trade around this area a bit. If the price continues to bounce back from $ 6,650, then I would expect another hit to the zone of $ 6,900-7,000. However, I believe that $ 5,400 and $ 4,800 will be tested in the near future, he said. ”
The macro market structure of BTC shows a bearish sign
This short-term technical weakness caused Bitcoin's macro market structure to begin to show signs of weakness.
Renowned analyst Jonny Moe told his followers that he is patiently waiting for an incident from the rising wedge model Bitcoin has formed over the past few weeks.
Still watching, waiting. Sure looks like we cant quite close.
– Jonny Moe (@JonnyMoeTrades) March 25, 2020
“Still waiting. Like surely we will get it. Note the descending volume record. ”
According to the above model, it is likely that the price will plummet after BTC posted a confirmed incident below the support line of the wedge model.
Moreover, the gradual decline of the trading volume indicates that Bitcoin is preparing to make a major movement. While considering the current price area, the factors are favoring the bears, so this next movement will benefit sellers.
Is there any chance for the bulls?
According to a recent Bitcoin Journal report, Bitcoin is at the end of a trend reversal bottoming, found in Chart Patterns' Thomas Bulkowski’s Encyclopedia.
Currently, the BTC price has retested the trendline of the model, followed by a spike that surpasses the current trading range and approaches $ 9,000 in the next two weeks, which means that the trend is bearish. The current will be reversed shortly.
If the Bitcoin price continues to move in an uptrend line formed from the recent lows and breakout above the current resistance at $ 6,900, a rally to $ 9,000 is possible.
On the other hand, a break below the uptrend line will cause Bitcoin to see even more significant downside. $ 5,400 and $ 4,800 will be the next stop for BTC, after this incident.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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