Bitcoin price is finally taking a much-needed breather, after rallying for five months straight and bringing crypto investors who bought the bottom as much as 300% returns before it was rejected at $14,000 per BTC.
The current price action has Bitcoin price trading in the mid- to low-$10,000 rangefollowing last night’s “ugly” daily, weekly, and monthly close – a close that could signal significant downside is int he cards. With price hovering just above the $10,000 – a level that was supposed to act as an important FOMO trigger – will it continue to hold as support or is a deeper correction due?
Bitcoin Price Action: Will $10,000 Hold As Support?
Following the massive Bitcoin price rejection at $14,000 that caused a flash crash that saw over $2,000 in value wiped out of the leading crypto by market cap and took down a number of crypto exchanges, the crypto asset that’s been the talk of the market throughout 2019 has finally began its long-awaited correction that analysts and traders have been clamoring for ever since the rally originally began.
Bitcoin price struggled to make another reattempt at the high, and creating a rounded top. The sharp, V-shaped high followed by a rounded, second top appears to be an Adam and Eve double top formation, that often occur when a trend is exhausted and is about to reverse.
Adding even more bearish potential to Bitcoin price charts, the June monthly candle closed as a doji – a type of candlestick showing indecision and potentially, a trend reversal.
If Bitcoin breaks below $10,000 with power, and a major sell-off ensues, $10,000 may end up acting as a FOMO trigger, yet in reverse, and cause a panic-sell event that could cause the asset to retest former lows.
Related Reading: This Textbook Indicator Hints a Sharp Bitcoin Trend Reversal
While panic selling could send Bitcoin plummeting downward as we’ve witnessed in the past, a correction after so much upward movement is healthy, and doesn’t put the integrity of the bull market structure that most analysts say has been building in recent weeks at risk.
However, if Bitcoin were to somehow break back below $6,000 and retest lows, a bull market would likely be a long ways off for Bitcoin and it will be even more difficult for traders to shake the feeling of disbelief they felt when Bitcoin price first started to turn around.
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