Over the past 24 hours, Bitcoin hasn’t performed too well. After maintaining the $6,700 support for a number of days, the cryptocurrency tanked on Friday evening in a move that shocked investors, falling as low as $6,050 by the next morning, marking a decline of 10% from the then-daily highs.
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Although the selling pressure has since abated, with BTC holding $6,200 over the past few hours, some fear the crypto market will continue to trend lower in the coming days due to technical factors.
Bitcoin Chart Flashing Number of Bearish Signs
According to crypto trader CryptoHamster, Bitcoin’s daily chart is flashing three harrowing signs at the moment:
The Tom Demark Sequential, which called Bitcoin’s 2019 top at $14,000 and the bottom at $6,400, recently flashed a green “9” candle, suggesting a reversal is imminent.
The Stochastic RSI has seen a bearish crossover, suggesting downside remains.
The MACD histogram is currently declining and looks poised to turn negative within the next few days.
On a daily time frame: – TD Sequential green “9” – Stochastic RSI bearish crossover– MACD histogram declineLooks pretty bearish to me. $BTC $BTCUSD #bitcoin $XBT pic.twitter.com/6UWhrl5kaT
— CryptoHamster (@CryptoHamsterIO) March 28, 2020
Not the Only Bear
It isn’t only the abovementioned analyst who expects Bitcoin’s prospects to worsen.
Cryptocurrency trader DonAlt — who called much of Bitcoin’s recent decline — posted the below chart while asking why the recent price action “feels so familiar.”
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As can be seen below, the commentator is referring to his sentiment that the price action that has transpired since March 12th is similar to that seen in late-February to early-March, during which BTC rallied higher to only get rejected at a horizontal resistance.
Why does this feel so familiar pic.twitter.com/8mSWsDucA5
— DonAlt (@CryptoDonAlt) March 27, 2020
If Bitcoin is to follow this forming pattern to a T, it will make one more attempt at surmounting $7,000s in the coming days, then fall dramatically, potentially towards the local lows at $3,800.
The expectation that the cryptocurrency market will continue to retrace further has been echoed by Bitcoin chartist Crypto Cactus, who remarked that with the recent move, the cryptocurrency has moved below a key horizontal level and is showing signs it is entering into a textbook “mark down” phase, which will likely result in more losses for BTC in the short term.
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