The bitcoin price dump doesn’t seem to have an end since the price of the number one cryptocurrency suffered a huge setback in August 28th and crashed the support line of below $10,000 as we read in the altcoin news reports.
The bitcoin price dump was expected and many analysts warned that this will actually happen and unfortunately for the bulls, the technical analysis shows that the pain is not over yet. The bitcoin price rally has been losing its steam since it reached a new peak at $13,880 on June 26th and bulls tried to keep the momentum alive but the attempts to rally the troops were met by the heavy selling actions. By looking at the daily charts, it seems like the cryptocurrency has generated three lower highs and each high was painted after bouncing back from the support at $9,600. The price action formed a formation of a bearish descending triangle. The uptrend support that led the market to the $13,880 was later converted into resistance and this points to the growing strength of the bears.
The owner of Wyckoff Stock Market Institute, Todd Butterfield shared his views on bitcoin and stated:
“On June 26th our Proprietary Technometer indicator warned of an overbought market and one that was needing a correction. That day, we experienced a Buying Climax (BC) on heavy volume, and then an Automatic Reaction (AR) the following week, and then a rally for a Secondary Test (ST). The Secondary Test came on lower volume when compared to the Buying Climax, which said the high of the Buying Climax would stand as resistance.”
In other words, the experts from the institute expressed the views that the bitcoin cryptocurrency is likely to correct in the future and in addition Butterfield stated:
“Since our Technometer is at a reading of 41.82, we have no reason to believe the selling is over, as we are wanting a reading of 38 or below which would tell us the selling has possibly run its course. So we expect a break of the $9,150 area where we will be preparing buy orders. We expect all-time highs shortly thereafter.”
As we can read in the latest cryptocurrency news, Butterfield has already placed hits bets on Bitcoin and it seems like the leading cryptocurrency will slide again before resuming the uptrend.
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