Bitcoin has stalled over the past few days and found itself between a rock and a hard place as analysts described it. People are still undecided about where the cryptocurrency will go in the next few weeks, even though one trader said that the mega rejection at $9,200 could ignite a further bearish trend.
In the wake of the flash crash at $9,200 last week, the trader Haejin tweeted that the “mega rejection” happened when BTC was unable to go above $9,200 – and looked to the fact that BTC saw a bearish retest of the 200-day moving average, collapsing out of a multi-week rising wedge and failing to surmount the key macro resistance. These were the three signs in the Bitcoin price news that showed how bears remain decisively in control.
— Haejin (@Haejin_Crypto) January 24, 2020
So, what does the mega rejection mean?
According to Haejin, it fullfils a bearish fractal which the commentator laid out. As you may know, Haejin last week noted that Bitcoin’s price action since the $14,000 top in June is reminiscent of the one seen in the 2018 bear market. Both the cycles are seeing a downward price channel, an upward wedge-formed false breakout, declining volume as well as signs of capitulation.
Then, the analyst added that if BTC follows the exact path it did in 2018, the price will collapse to the $6,000 region soon and then BTC will capitulate in March or April to fall as low as $3,300 by the time of the halving.
https://t.co/JhMTlE2zA1: Bitcoin Deja vu?
Here is a Members only chart: Note the Inverse H&S on both fractals.
Also the three wave ABC price constructs
The downward price channel
The upward wedge
Potential Capitulation Volume
All within 4 months? Hmmm. pic.twitter.com/hXNN53PI7B
— Haejin (@Haejin_Crypto) January 17, 2020
The big question in the cryptocurrency news today is – can the Bitcoin bulls step in?
The mega rejection makes everyone wonder about this. However, another analyst named filbfilb has the perfect answer for this and predicts that the halving taking place in May 2020 is a crucial event that brings back some optimism.
“Overall, Bitcoin is exactly where [I] anticipated; slowly grinding up towards previous resistance… I’m very much of the opinion that Bitcoin will reach to at least $12,500 level before the halving,” he said.
Another analyst wich a Twitter nickname Financial Survivalism said that he thinks that BTC is on track to hit $20,000 by July 1st and would likely extend its gains in the news few months.
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