Although the price of Bitcoin appears to be variable, the cryptocurrency has been in consolidation for the past two weeks, and after briefly interacting with high levels of $ 7,470, it fell to $ 6,000 levels and is now trading at $ 7,000.
Bitcoin seems to have hit a hard rock this time around, and BTC could not surpass this level as the $ 7,300-7,400 levels formed historical resistance. However, according to a well-known cryptocurrency analyst, Bitcoin may be able to take control and start a rally if a certain price point is reached.
If Bitcoin breaks this level, the bears will be hit hard
CryptoYoda, the popular cryptocurrency analyst, recently published a series of technical analysis and explained its predictions for Bitcoin as follows:
While Bitcoin tends to decline due to a rising wedge formation and the presence of a head and shoulder pattern, Bitcoin will override the $ 7,475 Bitcoin bear case. Since long positions at this level have already been achieved through previous Low Resistance levels, this can lead to a large elimination of short positions and a strong rally in volume buying.
According to the analyst, if Bitcoin manages to reach new heights, it will prove that the ongoing consolidation is likely to reach $ 8,000 and beyond. Importantly, the analyst states that if this break occurs, the daily 100 and 200 exponential moving averages will face “general resistance” at $ 7,600 and $ 7,900, respectively.
Sales Pressure Increases in Bitcoin
According to analysts, if the bulls want to be successful, they need to act quickly or the pressure on the sales side is increasing. BlockTower analyst Avi Felman said he saw two clear technical signs that a correction in the price of Bitcoin is on the horizon:
Tom Demark Ranking (TD), which is used to track trend changes in the market, recorded 9 sales candles in three days. In March and December 2019, when the similar situation was observed, Bitcoin saw a sudden decrease and created new bottoms.
Ethereum currently does not exceed 50 daily averages of 50 and averages over 200.
In addition, cryptocurrency analyst DonAlt said that while the last daily candles were not “super-drop”, they were “very similar to the $ 10,000 summit” during this timeframe in February, pointing to structural similarities between the price action of Bitcoin.