Bitcoin continues trading beneath key trendline as selling pressure begins mounting
Bitcoin has continued trading around $9,170 overnight, struggling to garner any clear momentum as its buyers and sellers both reach an impasse.
BTC 4 hours chart | Source: Tradingview
The latest rejection at $10,000 caused it to dip as low as $9,000. Although buyers quickly stepped up and propelled it back up to its current price region, this downside movement marked a break below a multi-month trendline.
Furthermore, an analysis of the cryptocurrency’s Renko chart also points to underlying weakness, as it suggests that BTC has formed a decisive top that will be followed by further downside.
It is vital for buyers to recapture the $9,500 region
This marks a slight decline from daily highs of over $9,500 but is around the price point at which it has been trading at throughout the past few days.
Although in the past these rejections have done little to alter Bitcoin’s underlying market structure, the latest rejection it posted caused it to decline beneath a key ascending trendline that had been guiding its multi-month uptrend.
— Teddy (@TeddyCleps) June 13, 2020
Crypto Capital Venture, another crypto trader who target of $6,200, he tweeted and show the BTC chart below:
Bitcoin breaking through 50 daily moving average. No bounce here is the first indicator of a multi-week downtrend to target of $6,200
Image Courtesy of Crypto Capital Venture | Chart via TradingView
Miners Hold Strong
There is one on-chain silver lining though: the mining scene.
Blockchain data firm Coin Metrics observed on June 14th, Bitcoin’s hash rate has recovered the losses it incurred after the block reward halving on May 11th:
At Bitcoin’s current hash rate, the next difficulty adjustment, in ~2 days, could be the largest since January 2018, with an estimated increase of ~15% pic.twitter.com/f233ojbPgQ
— CoinMetrics.io (@coinmetrics) June 14, 2020
The strength amongst mining entities may not be enough to stop the confluence of a bearish on-chain and technical outlook for Bitcoin though.
Don Alt, another trader on Twitter explained:
“I’ve been seeing more and more comments saying BTC going down to support is unlikely because that’d be too big a drop. That’s not how BTC works. Retraces are short and vicious. Crashes even more so. 40% down is not unlikely, it’s happened before, it’ll happen again.”
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