Last Time This Indicator Flashed, BTC Dropped By 40%: Analysis

The last time this indicator flashed, it made BTC drop by almost 40% and now this indicator has returned. Bitcoin is facing quite the turbulence as of late with the crypto price action favoring the bulls as we can see in today’s BTC news.

Each dip resulted in a strong buying pressure which led to an all-time high with the ongoing bulls market turning into a parabolic increase. The cryptocurrency is fast approaching $30,000 with this being the key level that could prove to be a major hurdle for the cryptocurrency to break above. One analyst spoke about Bitcoin’s outlook explaining where the trend will go in the mid-term and will mostly depend on the reaction to an emerging trend. The last time this indicator flashed, the cryptocurrency dropped by almost 40% before it was able to recover and see exponential growth.

Bitcoin was caught in the throes of a wild bull market in the past few months and even showed signs of letting up as the bulls continue absorbing every single dip. The cryptocurrency is approaching a key level which was long looked upon as the main target for the growth of $30,000. This could prove to be a strong resistance level since it managed to shoot above $20,000. One indicator is now forecasting an imminent retrace and if the history rhymes the indicator flashing could suggest another drop which is imminent before BTC sees exponential growth.

At the time of writing, Bitcoin was trading up just over 1% with a current price of $29,300 which is around the same price at which it was trading over the past day. Bulls were trying to send the price up to the $30,000 price point but the selling pressure seems to be very intense. Breaking above this level could be key for BTC to see a new phase of parabolic growth. One trader also stated in a recent tweet that Bitcoin’s monthly momentum reading is at levels that are not seen in quite some time. the last time it was this high, the cryptocurrency saw a huge retrace which sent it reeling down 38% before posting exponential growth:

 “BTC Monthly Momentum Reading: Something interesting that I’ll be on guard for (interesting, but, not actionable by itself). The last and only time that $BTC saw a Monthly momentum reading this high we saw a 38% retrace & a recovery intra-month and continued exponentially.”