Bitcoin price action has been volatile lately, moving mostly sideways with several unsuccessful breakout attempts. The fact is that $30,000 won’t break easily. brings back memories of Bear Market support at $6,000 – which, after a full year, was finally broken down to the real bottom.
The leading cryptocurrency by market cap did something similar after settling in late December after a June 2019 peak, but then widened with Black Thursday before finally moving higher. Could these clues help build a case for a false bottom in bitcoin at present?
remember Bear Market, Bakkt and the Black Thursday Plummet
Bitcoin price action over the past four years has been a rollercoaster, and one of the wildest ever. The 2017 rally sharply increased from $1,000 to over $20,000, sending the entire crypto market into a trough. Bear Step.
Price action kept grinding against the same support for months on end, but declining highs – signal of a downtrend. A lower low was finally formed at the end of November 2018, when bitcoin broke Bear Market Floor.
Related Reading | Important Bitcoin Analysis June 2021 Monthly Close
From there, news about a potential Facebook-led cryptocurrency and Bakkt cryptocurrency exchange further fueled the bullish narrative – and its price soared to $14,000.
Following the rejection, bitcoin price action hovered sideways for another several months and another false bottom was formed. The rally in early 2020 broke the downtrend, but when false All crypto crashed on Black Thursday.
Will the pattern of false bottoms finally end? | Source: BTCUSD on TradingView.com
Bitcoin price in danger of fake another false bottom
Bitcoin has once again found itself trading sideways, which is yet to be broken. Weeks of effort have failed, and barely bear $30,000. tasted less than.
But there’s saliva for more in that flavor, and it’s up to the bulls to make sure bitcoin doesn’t get there. only problem, weekly Relative Strength Index has fallen to a level that in the past served as the so-called “false bottom”.
Related Reading | Bull Signals From Below Bitcoin Still Best Hope To Continue
When this fake bottom remains and a bounce occurs, the rejection gains enough momentum to return on the next attempt. pattern fits the bill an abc correction, where the C wave is always lower than the initial correction A wave. The B wave is on the opposite side of the correction and may or may not yet happen.
Will Bitcoin Finally Make Another Leap Through Support? What is in favor of the cryptocurrency is hope, and a rising trend line on the same Relative Strength Index. You can do this Read Bullish Take Here.
Featured image from iStockPhotos, Charts from TradingView.com