Bitcoin is currently consolidating within the mid-$9,000 region. The crypto has been trading around this price level for the past few weeks, but a sharp selloff seen yesterday jeopardized this trading range.
Bitcoin rebounds following a sharp selloff
It also marked a bearish resolution to the long-held consolidation channel that the crypto had been caught within around $9,700.
Analysts are noting that the rebound seen overnight could play in bulls’ favor, as it may allow the crypto to confirm its monthly open at $9,400 as a level of support.
“Turn the monthly into support and we can have [bull] dreams again,” one popular trader noted while pointing to the chart seen above.
Bullish Is Still in Control
On June 11th, Bitcoin failed to decisively break past $10,000 for the umpteenth time in weeks. The cryptocurrency dove by approximately 10% after attempting to cross that resistance, crushed as a cascade of longs were stopped out of their positions.
Many were quick to express bearish sentiment after the move transpired.
As reported by AZCoin News previously, DonAlt, a popular trader on Twitter even said that Bitcoin could dive by 40% in the coming weeks:
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 Bitcoin works.
Retraces are short and vicious.
Crashes even more so.40% down is not unlikely, it’s happened before, it’ll happen again. pic.twitter.com/DAxARSUdTC
— DonAlt (@CryptoDonAlt) June 11, 2020
A top technician begs to differ, sharing the chart below in the wake of Bitcoin’s $1,000 crash on June 11th.
He wrote that technically speaking, the cryptocurrency is still decisively in an uptrend. “This is not ‘the big move. Nothing significant happened,” the analyst wrote, referencing how the crash did not bring Bitcoin out of the ascending triangle structure he depicted.
An ascending triangle is a traditional chart structure that is formed when an asset is trading in an uptrend but continually runs into a horizontal resistance, creating a triangle. Ascending triangles are also marked by decreasing volume.
In Bitcoin’s case, an ascending triangle has formed after the cryptocurrency experienced a series of higher lows over the past five weeks and multiple failures at breaking past $10,000.
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