After facing a significant amount of downwards pressure, Bitcoin (BTC) capitulated yesterday and fell to lows of roughly $9,500 before bouncing and reclaiming its position above the key $10,000 price level.
Now, one prominent analyst who predicted the bull run that was witnessed throughout the first half of 2019 is now claiming that Bitcoin may test its 2019 trend line in the near-future, which would mean that a drop below $9,000 is imminent.
Bitcoin Plummets Towards $9,000 Overnight Before Bouncing to $10,000
At the time of writing, Bitcoin is trading down nearly 5% at its current price of $10,040, which is down significantly from its 24-hour highs of nearly $10,600.
Yesterday, BTC faced a slow grind down to below $10,000 which instantly sparked a bout of capitulation that sent the crypto down to lows of roughly $9,500, at which point the crypto incurred an influx of buying pressure that allowed it to climb back into the $10,000 region.
This volatility and downtrend was first sparked earlier this week when BTC attempted, but failed, to decisively break above $12,000, which has proven to be a strong level of resistance for the cryptocurrency.
Josh Rager, a popular crypto analyst on Twitter, explained in a tweet that the latest bounce was sparked when Bitcoin tapped its weekly support level around $9,500, which may be the next key level that bears attempt to push BTC below.
“$BTC went in the gutter on the 4 hr with RSI hitting levels we havent seen since 2018. Bounced near weekly support and holding, the prior weekly support has held as resistance so far. Good news, higher lows across the trend,” he noted.
Prominent Analyst: BTC Likely to Touch 2019 Trend Line Before Uptrend Continues
Throughout the course of Bitcoin’s whirlwind first half of 2019, the cryptocurrency formed a bullish trendline that has yet to be touched by BTC, with it currently existing at just below $9,000.
Peter Brandt, a popular crypto analyst on Twitter, recently said that he believes Bitcoin will touch this trendline before it continues its uptrend.
“Bitcoin remains above the pace of its 2015-2017 bull run (for now). The 2015-2017 trend tested its trend MA multiple times (green arrows). The current trend has yet to do so,” he explained.
As the week continues on it is highly likely that Bitcoin’s reaction to this trendline will be a key indicator that signals whether or not it will soon face even further selling pressure, or if it will climb higher.