Bitcoin Price Analysis: Is The Worst Is Yet To Come? BTC/USD Double-Top Pattern Spotted
- Bitcoin price soared from last week’s lows at $8,100 but once again got rejected at the critical $10,000.
- Bitcoin is staring into a bottomless pit id it does not break the hurdle at $10,000; possible double-top reversal.
Bitcoin made a run for the $10,000 level on Thursday. The bullish momentum was so impressive that investors waited with bated breath to see a confirmed breakout above $10,000. When Bitcoin climbed above $10,000 last week, it lost steam slightly above $10,100. The growth from recent lows at $8,100 confirmed to the buyers that $10,000 was achievable and could allow them to shift their focus on higher levels at $13,800 (2019 high) and $20,000 (all-time high).
However, Bitcoin bears had a different plan, which they seem to be succeeding as BTC/USD hit a wall at $9,935 (on Coinbase). Following the snag, Bitcoin embarked on gains slashing exercise to the extent of touching $9,234 (intraday low). At the time of writing, Bitcoin has adjusted upwards to $9,490(market value). The real struggle is to hold above $9,500; a move that would give buyers a chance to focus on breaking the critical level at $10,000.
Double-top Pattern Reversal In The Offing
As Bitcoin inched closer to $10,000 it hinted the possibility of a double-top pattern could come into the picture. This pattern is usually used in technical analysis to signal a possible reversal from a continued uptrend. In this case, if Bitcoin retests $10,000 or even better $10,100 and fails to sustain gains to higher levels based on good volume, a reversal from this pattern could sink Bitcoin to levels seen last week close to $10,000.
BTC/USD 1-hour chart
Consequently, the RSI shows that Bitcoin is in for a bearish beating as it slides under the average (50). On the brighter side, the widening gap between the 21 EMA and the 50 EMA suggests that buying pressure is still present only that it lacks a catalyst.
Bitcoin Intraday Levels
Spot rate: $9,490
Relative change: -295
Percentage change: -3%
Trend: Bearish
Volatility: Shrinking
Bitcoin is staring into a bottomless pit id it does not break the hurdle at $10,000; possible double-top reversal.
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
Published at Fri, 15 May 2020 03:42:58 +0000
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