Bitcoin avoids death cross formation despite the sharp decline seen yesterday which led to losing the macro technical strength and seeing more downsides. The latest Bitcoin news today, show us that the cryptocurrency was able to invalidate the weakness and is now going to the previous consolidation channel.
The strong reaction to the recent price lows means that Bitcoin avoids death cross formation and confirmed the bull-favoring ascending triangle which could fuel huge momentum in the upcoming days. Bitcoin and the entire crypto market saw some immense volatility over the recent period which initially favored the sellers as it declined down to the $8,900 before finding a little buying pressure that led it to the $9,200 level. From this point on, the buying pressure mounted over the day and helped BTC to find its way up to where it was previously consolidating within the mid $9000 range.
The price movement allowed the number one cryptocurrency to confirm the existence of the ascending triangle pattern that some believe it will catalyze massive upsides in the upcoming weeks and months ahead. At the time of writing, Bitcoin was trading up just under 4% at a price of $9530. This is close to where it was trading a few days ago before the huge influx of selling pressure led to reaching $8900. The price action was critical for determining the near-term trend of Bitcoin as a firm break below the upper $8000 region which could have been enough to start a new massive downtrend.
Buyers were defending this level but flashed some signs of serious strength as well. Before the sharp decline and then rebound overnight, Bitcoin was on the cusp of forming a death cross and one analyst said at the time:
“Cloud so…close to death cross on 4h – last time it happened it was February.”
The dip from yesterday and the rebound right after confirmed the lower boundary of the ascending triangle formation which some analysts were watching before. It now seems that this pattern is valid and could even send Bitcoin higher in the upcoming months once it reaches a new apex in August. It is also imperative that Bitcoin crashes the $10,500 resistance in the upcoming few months in order for the triangle to be confirmed. As one analyst noted:
“Ascending triangle intact and in force.”
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