After a week of bearish trends worrying the crypto-community, Bitcoin prevailed after soaring by over 8 percent over the last 24 hours. The price movement of BTC over the past seven days has had the community speculating that Bitcoin might be in for a major pullback.
Previously, many crypto-analysts had indicated that the price of Bitcoin was due for a 40% devaluation. Bitcoin had a few weeks ago, peaked at $13,800, below falling immediately and breaching the $12,000 mark within 24 hours.
Over the last 24 hours, Bitcoin first pumped by about 3.38 percent, which took the valuation from $11,473 to $11,789. The asset then largely consolidated over the next 11 hours, which saw the valuation remaining under $12,000, but not below $11,800. At 19:00 UTC, Bitcoin breached its immediate resistance of $12,064 and the coin continued to rally and peaked at $12,764.
During the course of the rally, Josh Rager, a popular crypto-trader, identified that the digital asset had overcome a key resistance zone of $12,100 – $12,500. The same resistance zone was widely discussed over the past week, and it was suggested that it would be crucial for BTC to breach this zone in order to re-test its yearly high of $13,800.
After the rally, Rager also noted the formation of a double top in the charts. He suggested that similar patterns had surfaced in the long bearish run of 2018 and implied that price always fell whenever it surfaced in the charts last year.
A double-top pattern had been previously noticed in 2019 and the current chart indicates the formation of a second one. Rager indicated that since 2019 was collectively believed to be a bullish year, the prices should go up if another double-top formed.
However, the valuation of Bitcoin in a bull market tends to break patterns regularly due to its bullish momentum. Hence, it was not ideal to commit to the fact that the formation of double-top could predict the next trend.
Author: Biraajmaan Tamuly