Wednesday, April 14, 2021
Home Crypto News Analysis BTC Forms Double Top and Falls to $ 17,200-A 14% crash-What's Next...

BTC Forms Double Top and Falls to $ 17,200-A 14% crash-What’s Next For BTC?

- Advertisement -

Bitcoin fell to $ 17,200 on Binance Exchange as buying pressure finally eased after weeks of upward price action. Bitcoin corrected from the $ 19,600 to $ 17200, 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. 

Bitcoin Extremely Overbought

Mohit Sorout, a founding partner at Bitazu Capital, shared the chart shown below on the day Bitcoin crossed over $ 19,000.

The chart shows the price action of BTC relative to the Pi Cycle indicator

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.

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:

- Advertisement -
Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown has obtained his master's degree in Stock Trading And Investing. His specialty is analyzing the price actions of crypto and stock markets. Albert provides a major role in TheCryptoBasic as a crypto analyst. He is also known for his work on Twinkle Magazine and TipRanks.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Binance List the Coinbase Stock Token (COIN)

Binance will list the Coinbase Stock Token (COIN) on 2021-04-14 (UTC), during which the COIN/BUSD trading pair will be open. Users will be able...

6 Blockchain Business Use Cases You Should Know

The potential of the distributed ledger technology (DLT) — an umbrella term of which blockchain is the most popular kind — is enormous. Businesses...

Europe’s Largest Digital Asset Investment Firm CoinShares Launches XRP Exchange Traded Product (ETP)

CoinShares, a major British cryptocurrency investment company, has announced it plans to list XRP (Ripple) exchange-traded fund (ETP) on the SIX Swiss Exchange. This ETP...

Coinbase Stock Hits The Market And Gets Reference Stock Price of $250 from Nasdaq

Nasdaq has released the figures for the reference stock price of Coinbase, the largest cryptocurrency exchange in the United States, which is scheduled to...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.

follow us in feedly