Since Bitcoin has reached more than five days of 8,600 U.S. Dollar to its lowest level, could develop the Asset extremely well.
BTC rose on Thursday on up to 9.650 Dollar and liquidated in Shorts in the value of tens of millions of dollars. At the same time Ethereum saw a massive breakout above a key level, suggesting that BTC still has room to run.
Nevertheless, a Top Trader suggests that Bitcoins recent price action looks similar to the price action at the top in February.
Bitcoin is similar as in February 2020
A crypto-Trader has recently shared the picture below, the recent price action of Bitcoin eerily looks at the February High of $10,500 for similar.
Both time similar phases have rooms, including a Triple Topping pattern that suggests a potential reversal.
BTC should trade like according to the February highs, it could come in the following weeks a sharp decline.
Chart of crypto-Trader Joshnomics (@joshnomics on Twitter)
It’s not just the Similarities in the structure of the market, which suggest that Bitcoin tops in the order of $ 10,000.
A prominent crypto-Trader, the chart below, recently said of the price movements of BTC since the start of the year with higher-level Bitfinex order book data.
The diagram shows that there is currently a mass of Sell-Side Orders in the range of 10,000 to more than 10,300$.
This plays a major role, because as a Bitcoin in the last month, twice in the area of $ 10,000 is climbed and this area was rejected, there was also a sale wall in this area.
The chart also shows that BTC, as he reached in February, the highest level of $ 10,500 in, caught in a confluence of sell orders at $ 10,500 in.
The historical precedent should have on hand, there is a good Chance that BTC is experiencing a price rejection, if and when it recovers to $ 10,000.
Chart of the crypto-Traders Coiner-Yadox (on Twitter at @Yodaskk known).
Fundamentals could disrupt bearish reversal
Although the technical data indicate that Bitcoin could soon occupy the top position, showing the fundamentals of a different story.
The On-Chain-Trends in the crypto-currency decided to stay bullish, say analysts.
Blockchain analysis company Santiment about writes:
“Despite the slight downward trend in BTC of 4.4% today, looks to be smooth and healthy, and our model shows a semi-bullish Signal. The number of unique tokens that are processed through the Bitcoin network, is slightly above the average for may, depending on where the price levels are currently“
In addition, the Chinese Yuan to its weakest level since may 27. February 2008 was set. The Offshore-Yuan-market reflected this decision and rallied to “the weakest level since September, 2019”.
For Bitcoin this is an upward trend, because the crypto can serve as currency as a safe haven for Chinese investors, the might of a falling Yuan are severely affected. Chris Burniske, Partner of Placeholder Capital, comments:
“If China’s CNY weakens against the USD could repeat itself in 2015 and 2016 (see figure below), in which the strength of the BTC with the weakness of the Yuan, together hits.”