BTC Indicator Flashes Potential Warning: 57% Chance Of Falling?

The Bitcoin news today show us that there is a 57% chance of Bitcoin undergoing a bearish breakout according to one BTC indicator. The warning pops at a time when the flagship coin is testing a 2.5 year old trend line as its main resistance.

As we could see in the updates today, Bitcoin (BTC) has confirmed that there is a standalone technical indicator that is present – and one which could send its price down to ,700.
buy ventolin online www.parkviewortho.com/wp-content/languages/new/prescription/ventolin.html no prescription

The BTC indicator flashes a potential warning today and many analysts have tracked it down.

We are talking about Diamond Top, the fractal pattern which appears when an asset forms “higher peaks and lowers valleys” which would eventually trap the price action in a diamond-shaped area. The indicator was first discovered by a prominent technical analyst called Tom Bulkowski and is now slightly bearish – leading the assets to fall 57% of the time.

As you can see on the image above, the indicator has been published on TradingView with a textbook description that highlights successive formations of uptrend, shaping, higher peaks, lower valleys, touches and breakout.

When putting all of these against the current Bitcoin price movements, we can see that the BTC indicator flashes and could paint a scenario where BTC could visit the $7,000 region. As we all know from the latest cryptocurrencies news, the coin was trending upwards as it formed a diamond shape and is now trying to breach the $10,000 level which is probably the strongest resistance so far.

But as the BTC indicator flashes, it may also potentially weaken the strong performance of Bitcoin (BTC) in the news. Even though this is only a theory, the selling pressure near the confluence would be higher and would lead to the price falling back to retest the 200-day moving average (marked in orange on the photo above).

Bulkowski noted that “the crash site (downtrend end)” following the Diamond Top breakout is “often near the price level of the launch site (uptrend start).” That being said, BTC now risks falling back towards point A after its breakout – which means that we could see a price of around $7,700 which is the same level that offered support to Bitcoin downtrends in September 2019, October 2019, January 2020 and March 2020.

What do you think about the flagship cryptocurrency and its strength this month? Let us know in the comments below!