Bitcoin price keeps dropping, but mostly kept sideways leaving bears unable to break support to new lows. With the trading range at a pivotal point, as one trading myth often says “time to pay attention”.
The reason to focus is what started fractal In price action, it is now causing similar behavior in Bollinger Bands which has led to one of the strongest pumps in Bitcoin history. Is this what’s next for bearish sentiment at such critical rallies currently?
Pause in a downtrend leaves traders confused, market in fear
Markets are cyclical All too often sentiment lags behind price action. The recent uptrend in cryptocurrencies paused when things were at their best – just as Coinbase Global went public, and prices were at all-time highs.
Related reading | Market Timing: Why Bitcoin Could Sweep Lows Before Rebounding
It wasn’t until more than 50% of the BTC price was dumped before investors started a downtrend on Bitcoin. Over the past several weeks since the big drop in May, a symmetrical triangle It is formed but may not go as suggested by technical analysis of text books.
The Bollinger Bands closely match the "China pump" from 2019 | Source: BTCUSD on TradingView.com
Feeling very scared and a technical indicator that can be used to predict a rebound bollinger bands, much like the last time the market hit a pause in a new downtrend like this one.
At that time, the creator of the tool, John Bollinger, warned that now is the time to pay attention as the deception can soon be revealed and revealed.
Bitcoin ‘squeeze’ could lead to an epic pump
With feelings at their worst and Cleared from its lows now unchecked from the listBitcoin price could rise again to either retest or regain previous highs.
Price action has repeatedly penetrated the lower Bollinger Bands without a significant break, indicating that this latest test of the lower band is Bear Trap setting called “Gimmee tape” Discovered by Joe Ross.
Several wicks into the lower BB suggest a bear trap | Source: BTCUSD on TradingView.com
in 2019The top cryptocurrency has not been able to recover the lost level, but the bull market is much different this time. Holding the level here will cause the first major bullish correction to continue up from here.
If the level can not be restored, like a lot China pump failed in late 2019 and led to new lows, as well as any incomplete recovery from here. Regardless of what happens, it is worth paying close attention in the next several days for the Bitcoin price to choose a new direction.
Featured image from iStockPhoto, Charts from TradingView.com