After quickly rising at the weekend to reach new all time, the Bitcoin price seems to have hit a brick wall above $ 120,000, which caused a correction. Although this is expected to be a short correction, a remarkable development with an 8-year-old trendline that has marked the top of previous cycles has arisen. If this trendline retains resistance and Bitcoin cannot break it, this may mean that the top is located and what usually Follows is a long -term Bear market.
8-year-old trendline suggests that Bitcoin Top is located
Crypto analyst Martyboots, in one analysis On TradingView, a test of an 8-year-old trendline caught in the 2017-2018 cycle, Top From multiple bull markets. This trendline took place in the next large bullmarkt and in the Bullmarkt 2020-2021 the Trendline again marked the Cycle TOP, with a peak from Bitcoin at $ 69,000.
Related lecture
Currently, the Bitcoin price has come into contact with this trendline and the rejection of here suggests that this trendline could be the real deal. After he had beaten above $ 123,000, Bitcoin was immediately pushed back from this level, because sale and profitable became the order of the day.
To complete this trend, however, there are a number of things that must happen first. For example, the analyst explains that investors should look at the weak RSI divergence that becomes bullish. Moreover, a decrease in the volume and more rejections for Bitcoin would be a confirmation that the price is at the top. Marty also explained that the price that this trendline affects for the third time increases the chance that it actually plays in the same way as in the past.
If this trend line marks the top again, this can indicate the start of another Bear market. As the analyst explains, a top has been characterized by this trendline in the past “activated multi-month correction and bear markets.”
Still a chance of bullish continuation
The test of this trend line does not necessarily mean that the Bitcoin price must exceed this level, because there is still a chance of bullish continuation. As the analyst explains, a decisive break above the trendline would change this level in support and turn it upside down.
Related lecture
In addition, there is also many Buy Press the Bitcoin price Despite taking a profit. What is even more important is the fact that very large orders await the level of $ 114,000. This shows a lot of demand for BTC, something that could float up the price because the cost -based investors is rising.
Nevertheless, the analyst advises on this level until there is a confirmation anyway. “Warning for risk management: consider sharpening the stops, reducing leverage or covering until the fate of the trendline is resolved,” Marty said in closing.
Featured image of dall.e, graph of tradingview.com