Bitcoins momentum has Stalled, after the Coin is broken at $9.300 about his earlier resistance.The crypto-currency is now showing some signs of weakness and has a hard time to push even further upwards.An Analyst points to a technical pattern that is in BTC at the moment – strikingly similar to the pattern directly in front of the massive slump in March.Should repeat this pattern, it could lead to a Bitcoin falls in the coming days and weeks, significantly more.However, it is important to note that large whales have mined on Bitfinex their Short positions and, thus, indicates that you expect that Bitcoin will climb higher.
Bitcoin and the aggregated crypto market have experienced in the last few days some positive price action.
Although the gains of BTC have been mitigated, could outperform many of the Altcoins BTC significantly. Some of the Top Altcoins have risen since the beginning of the year, even over 300%.
BTC remains within its multi-month Trading range, trapped, which was formed at the beginning of may for the first time.
This range is between $9,000 and $10,000, and the market participants were not able to overcome both of these levels.
The Cryptocurrency is currently showing a massive bearish technical pattern, which could signal an upcoming strong downward movement.
Bitcoin is consolidating whales repel Short Position
At the time of writing, Bitcoin is traded for the price of 9,400 USD. The crypto-currency is traded for the last day at this price level.
Although the breakthrough on the 9.300 $-resistance was remarkable, it means he didn’t do much until BTC can overcome the resistance at 9500 $ and within the upper – $9,000 in-Region.
It seems that some of the so-called “whales” to assume that BTC will have to overcome these levels in the near future, because data show that they have closed their Short positions at a rapid pace.
An Analyst writes in a post the following about this Trend:
“The USDT-whales on Bitfinex gave up. During the final phase of the rally in may, they went strong to short positions, but lately, they have cut pretty much their entire Position.“
Image courtesy of the Byzantine General. Chart on trading view.
This pattern could bring BTC in trouble
There is a technical pattern that has formed in the last week, and this may cause problems for the further development of Bitcoin with.
An Analyst refers to a rising wedge in conjunction with a low volume – is strikingly similar to the just before the March meltdown.
He asked, “is it different this Time”, while he shared the diagram below.
Image courtesy of NebraskanGooner. Chart on trading view.
The next few days should reveal the validity of this pattern, because any higher pressure would make it invalid.