Bitcoin [BTC] price logs a new Bart-Simpsons pattern with a bounce above $8500 reversed in a short while.
Price looked primed towards testing the 200-DMA just below $9000, nevertheless, the it fell back through to the range below $8450.
The entire move took place yesterday, surprisingly, on the rise derivatives and crypto trader, Josh Rager, did warn of a fake bounce, he noted,
I’m sure people have flipped bullish again, but neutral now as price needs to continue to push to high $8ks Mid-range isn’t safe to buy if you’re thinking of rushing in, be patient as this could break back down to retest $8000 – $8200 (lower-highs)
The support areas are formed by large volume regions above $8000.
Signs to Turn Bearish
According to expert chart analyst, Peter Brandt, the bullish sentiments that began with the recent break-out above $8000 could be still intact.
Nevertheless, the price is closing in on the bearish resistances and support at the moment. According to Brandt, a break-down below Jan 14 low at $8100 and the channel support (currently at $8335) is paramount for the bulls.
The price of Bitcoin [BTC] at the 3: 30 hours UTC on 25th January 2019 is $8308. While it looks bearish for now, it could also be a short term ‘deviation’ in the pattern. The range around the $8000-$8500 range is currently forming a no-trade or yield zone.
The funding rate on BitMEX flipped negative on the hourly scale, after Sunday, this could be due to the long liquidations.
Moreover, considerable fear seems to be creeping in the market after a strong uptrend above $7000.
As reported earlier on CoinGape, the current chopping move is designed to hurt weak traders the most. On lower-time frames, trader and expert chart analyst, Zoran Kole suggests that the range is likely to hold,
Short $BTC from 85xx. Looking for 81xx. #crypto
Do you the price will be able to hold above the descending channel? Please share your views with us.
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