Bitcoin fell to $ 17,200 on Binance Exchange as buying pressure finally eased after weeks of upward price action. Bitcoin corrected from $ 19,600 to $ 17,200, down about 14%.
Analysts are currently divided over what comes next for the leading cryptocurrency.
Bitcoin began to roll over after it surpassed the $ 19,600 mark yesterday. At the same time, analysts noted that the cryptocurrency began to print bearish technical signals near the highs, which suggested that it was overbought.
The chart shows the price action of BTC relative to the Pi Cycle indicator. The indicator is a formula that accurately predicted BTC’s mid-term highs in the past, including the mid-2019 high, as well as a series of highs in 2016 and 2017.
If history repeats itself, there is a good chance that Bitcoin will correct back to the lower boundary of the indicator and then retrace higher to break the upper boundary of the indicator.
Alex Fiskum, a partner at Alice Capital, shared a similar bearish chart. The chart shows that the current market sentiment and positioning of Bitcoin look extremely similar to the 2019 highs and all-time highs were seen in 2017.
Bitcoin price forms a double Top
A double top pattern was formed near the $ 19,500 level and the price of Bitcoin dropped sharply below the $ 19,000 support.
The price dipped below many of the keys supports around $ 19,000 and the 100-hour SMA.
The hourly chart of the BTC / USD pair also broke below the major bullish trend line with support around $ 19,000.
Bitcoin broke the last swing low at $ 18,656 and continued its decline below the $ 18,500 level.
Bears pushed the price below the 1.236 Fibonacci extensions of the uptrend from a swing low of $ 18.656 to a swing high of $ 19.511.
The price further dropped and reached USD 17200 levels. If the price is unable to maintain 17000 psychological support, we may find support around $ 15800 to 16200 levels. Read More:
Originally published at https://thecryptobasic.com on November 26, 2020.