Over the past few days, Bitcoin (BTC) has stalled, finding itself between a rock and a hard place. Many analysts are currently undecided where the cryptocurrency will go in the next few weeks, though one top trader recently noted that BTCs price action at $9,200 could be a precursor to more downside.<\/p>\n
In the wake of Bitcoins flash crash at $9,200 last week, Haejin noted that this represented a mega rejection on a daily basis. He specifically looked to the fact that BTC saw a bearish retest of the 200-day moving average, collapsed out of a multi-week rising wedge, and failed to surmount key macro resistance three signs showing bears remain decisively in control.<\/p>\n
So what does this mega rejection mean for Bitcoin per Haejin? Well, it fulfills a bearish fractal that the commentator laid out.<\/p>\n
Per previous reports from NewsBTC, this Haejin last week pointed out that Bitcoins price action since the $14,000 top in June is eerily reminiscent of that seen in the 2018 bear market, with both cycles seeing a downward price channel, an upward wedge-formed false breakout (like the one we just saw), declining volume, and signs of capitulation.<\/p>\n
Haejinthen added that if BTC follows the exact path it did in 2018, the price will soon collapse back to the $6,000s, then Bitcoin will capitulate in March or April to fall as low as $3,300 by the time of the halving.<\/p>\n
Although this rising wedge breakdown is notably bearish, analysts havent given up hope that bulls will eventually step in, negating the aforementioned fractal analysis.<\/p>\n
Just this week, analyst Filb Filb who notably called Bitcoins flash pump to the $9,000s and crash to the $6,000s in late-2019 wrote in a recent newsletter that he is bullish on BTC heading into the block reward reduction or halving slated to take place in May:<\/p>\n
Overall, Bitcoin is exactly where [I] anticipated; slowly grinding up towards previous resistance Im very much of the opinion that Bitcoin will reach to at least $12,500 level before the halving.<\/p>\n
As to why $12,500 makes sense, he noted that that is the top target for a bullish inverse head and shoulders chart that is forming on a medium-term basis for Bitcoin.<\/p>\n
Theres also Financial Survivalism, a trader who in December called BTCs move into the $8,000s and $9,000s we just saw, explained in an extensive TradingView post that he thinks that BTC is on track to hit $20,000 by July 1st.<\/p>\n
Survivalism cited a flurry of strong technical factors and the impending halving.<\/p>\n
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