Analyst: Bitcoin is testing a critical level of support
Bitcoin (BTC) has been in the midst of intense volatility as the recent sideways trading in the mid range of 10. 300 $ to a sharp drop overnight towards 10. 000 $ led.
The bulls were able to push Bitcoin up slightly after this decline as buyers eagerly tried to push the key psychological level of 10. 000 Defend dollar.
However, it now appears that BTC is rapidly approaching a critical level of technical support that has developed over the recent upward trend, a break below that level could mean further setbacks.
Bitcoin plunges overnight during the violent movement towards 10. 000 $ from
At the time of writing, BTC is for 10. 215 $ traded, which is a decrease the daily highs of over 10. 400 $ means that were achieved during yesterday's slow upward trend.
This decrease occurred during a jerky movement, the BTC up to 10. 100 $ led. From that point on, Bitcoin was able to show some signs that it was stabilizing at its current price level.
Josh Rager, a prominent crypto analyst, spoke about this in a tweet recently, noting that altcoins may continue their upward momentum while BTC is trading sideways.
“Are you already having fun? It looks like BTC was a liquidation game in which one captures these offside positions with high leverage. 4% move down, 4% move up, followed by another 4% down. Not a Bitcoin trading area, but watch out for the alarms that could possibly move sideways with BTC, ”he explained.
Having fun yet?
Looks like $ BTC has been a liquidation game, catching those offsides with high leverage
4% move down, 4% move up followed by another 4% back down
No Bitcoin trade zone, but keeping eyes on alts that could potentially move w / BTC sideways pic.twitter.com/2SCq0KTbsp
– Josh Rager 📈 (@Josh_Rager) February 13, 2020
BTC is about to test a critical support level
A by-product of this move is the fact that this recent drop in BTC has brought the lower bound of a multi-week rising wedge that the crypto space has formed in recent weeks.
Teddy, another popular cryptanalyst on Twitter, spoke about this rising wedge in a recent tweet, referring to the graph below.
“BTC Daily tried to break the resistance of the ascending wedge, but was rejected. It looks like we're going to make another third happy attempt to support – bulls won't let me down, ”he remarked.
# BITCOIN | $ BTC
Daily attempted to break resistance of rising wedge, but was rejected.
Looks like we are going for a third lucky retest of support – bulls don’t let me down (🌩️) pic.twitter.com/k4igroPQE6
– TEDDY (₿) (@TeddyCleps) February 13, 2020
Proof of text: newsbtc