It now appears that Bitcoin’s recent surge from lows of roughly $10,000 to highs of over $10,500 was simply a flash in the pan, as BTC has now erased nearly all of the gains it incurred during this movement.
Analysts are now noting that Bitcoin’s current technical formations could signal that BTC is on the verge of a massive breakout, in spite of its recent lackluster price action.
Bitcoin Nears Critical Support Level, But Bulls May Soon Roar
At the time of writing, Bitcoin is trading down nearly 2% at its current price of $10,160, which marks a decent sized drop from its recent highs of over $10,500.
The $10,000 region has proven to be a strong support level over the past several days and weeks, with each drop into the upper-$9,000 region being met with strong buying pressure that sent the crypto surging higher.
This support, however, may be wearing thin, as each bounce from this level appears to be growing weaker and has been forcing BTC to consistently set lower highs – a sign that bears have a slight edge over bulls.
Chonis Trading, a popular cryptocurrency analyst on Twitter, shared his thoughts on the cryptocurrency in a recent tweet, explaining that it is currently trading just a hair above its ascending support line, with a potential break below this line leading to a massive plunge lower.
“$BTC – EMA cross rejected as #bitcoin has given up almost all of the pump a few days ago…break the higher low and look out below,” he explained.
Despite Current Bearishness, Could BTC Be on The Verge of a Major Breakout?
Although the signs may be pointing to a near-term continuation of Bitcoin’s recent downtrend, The Cryptomist, another popular crypto analyst on Twitter, explained that she believes that a large symmetrical triangle BTC is currently within could result in a major breakout.
“$BTC Possibility for major breakout? We have a large ascending triangle on both 3hr candle and RSI. If accurate we should breakout this large sym triangle within 3 days. Bears are still lurking and a possibility for 8k. All depends on legitimacy of this ascending triangle imo,” she said while pointing to the below chart.
Assuming that The Cryptomist’s assessment of BTC’s current price action is correct, then the next few days will likely elucidate as to whether or not a continuation of crypto’s downtrend is imminent, or if it will soon retest its year-to-date highs.
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