Traders expect to see bitcoin setting fresh lows in 2020 and in our Bitcoin news today we will discuss the major factors to watch out for.
Bitcoin saw some intense volatility earlier this month which caused it to dip to new lows of $9,400 before going on a rebound trip. It now seems that the cryptocurrency is once again caught within the long-held consolidation phase of $9,000. The analysts do remain bearish on the cryptocurrency as many of them noted that Bitcoin could now set fresh yearly low because of technical weakness as a part of the major factors to watch out for.
Bitcoin has seen mixed price action over the past period and it even rallied to highs of $10,400 earlier this week which was considered a bullish momentum. Its swift rejection gave the bears some ammo to continue going lower in the near term. Despite the rejection at these highs being harsh, the BTC buyers remained strong as they continue holding the asset within the $9,000 range. Even with the drop to $9,400, the bulls were quick to absorb which caused it to be extremely fleeting.
Traders expect to see bullish action in the long-term outlooks and a potential triple top with a larger descending trendline that both point to the possibility of lower lows coming shortly. At the time of writing, Bitcoin is trading up under 1% of the current price of $9,824. This marks a slight climb from the daily lows of $9,400 that was set yesterday in a swift and fleeting selloff action.
As per the Bitcoin news, the drop to these lows suggests that the asset is about to break below the trading range it had formed within the mid -$9000 region but the buyers were able to invalidate the possibility. Analysts are now noting that Bitcoin could be well-positioned to see new fresh lows in the near term. In addition to the lacking of buying pressure that is needed to lead Bitcoin to the $10,000 region, the latest rejection marks the third one it has seen at $10,500 in the time following the crash from the 2019 highs. This has also played a bearish triple top formation that could give the number one cryptocurrency a lower level in the near-term.
The below chart offered by the prominent trader on twitter shows this pattern while also outlining the macro support levels that could sit mainly around the $7,000 region. Another analyst pointed out to a descending trendline that has been formed over the past year as a reason why Bitcoin could decline further.
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