bitcoin price keeps falling, but mostly placed sideways and the bears unable to break the new low support level. With trading range at a critical point, as one trading legend often says it is “time to pay attention.”
The reason for the focus is what started as a fractal In price action, the Bollinger Bands are now creating similar behavior which has led to one of the most powerful pumps in bitcoin history. What’s next with bearish sentiment currently at such significant highs?
Traders confused by stagnation in downtrend, fear in the market
markets are cyclical And many times the price lags behind the price action. The recent uptrend in the cryptocurrency came to a halt when things were at their best – as Coinbase Global went public, and prices were at all-time highs.
Related Reading | Market Timing: Why Bitcoin Could Fall Before the Rise
It was no more than 50% off the price per BTC before investors started bearish on bitcoin. In the past several weeks since the big drop in May, a symmetrical triangle is in the making, but this text book may not be as technical analysis suggests.
The Bollinger Bands closely match the "China pump" from 2019 | Source: BTCUSD on TradingView.com
The sentiment is in extreme fear and is a technical indicator that can be used to forecast a bounce, Bollinger Bands, it looks like the last time the market reached a break in a new downtrend like this.
At that time, the manufacturer of the equipment, John Bollinger, warned that now is the “time to pay attention” because trickery may soon appear, and it may appear.
Bitcoin “Squeeze” Could Lead to Epic Pump
worst with emotion and A sweep of the lows now checked out of the list, Bitcoin price may pump higher to either retest or retest previous highs.
Price action has repeatedly turned rogue in the lower Bollinger bands without any major breaks, suggesting that this latest test of the lower bands is a Bear Trap Setup Called “Gimmy Bar” Discovered by Joe Rosso.
Several wicks into the lower BB suggest a bear trap | Source: BTCUSD on TradingView.com
in 2019, the top cryptocurrency could not recover the level it lost, but the bull market is very different this time around. Maintaining the level here will result in the first major bull market correction of the rally continuing from here.
Related Reading | Bitcoin Bulls and Bears Alike Beware of Potential Pump and Dump Fractals
If the level can’t be retrieved, a lot like China pump of the end of 2019 fails and moves to new lows, even then there will be some incomplete recovery from here. Whatever happens, the next several days deserve extra attention until the bitcoin price picks a new direction.
Featured image from iStockPhoto, Charts from TradingView.com