Bitcoin and the aggregated crypto markets have been facing tremendous volatility over the past several days and weeks, with BTC oscillating between the $10,000 and $12,000 region, making relatively large moves between each of these two price regions.
Now, the prominent analyst who predicted Bitcoin’s recent bull run is warning investors that Bitcoin may be forming a dangerous chart pattern that historically results in price breakdowns across different markets, and that a surge is needed to invalidate this possibility.
Bitcoin Plummets Below $11,000… Again…
At the time of writing, Bitcoin is trading down nearly 8% at its current price of $10,960, which is down significantly from its daily highs of $12,200 that were set yesterday.
While looking at Bitcoin’s weekly price action, it is clear that BTC is once again nearing a region of historical support that must hold, as it previously found strong buying pressure in the low-$10,000 region.
Additionally, BTC will be closing out its weekly candle today, which means that bulls must step up the buying pressure over the course of the next several hours or else the downwards pressure could continue to extend due to technical weakness.
Josh Rager, a popular cryptocurrency analyst on Twitter, spoke about the importance of tonight’s weekly close in a recent tweet, explaining that he believes the next downside target exists at $9,500.
“$BTC – price just broke below $11,500. Want to see Bitcoin regain momentum and close above this level by weekly close tonight. Monthly close is looking good, strong month of June but BTC still has ability to retrace to $9500 in coming weeks. Keep an eye on this area,” he explained in a recent tweet.
Prominent Analyst: BTC May Break Down Due to Historically Bearish Technical Formation
Peter Brandt, a prominent analyst who predicted Bitcoin’s recent bull run, recently told his nearly 300k Twitter followers that Bitcoin is currently forming a historically bearish technical formation that has result in downwards breaks in other markets.
“The analogue concept is a foundational premise of chart analysis — that forms tend to repeat, even in different time frames. Nasdaq 100 in 1999-2000 vs. BTC currently. Advance above 12444 violates possible analogue $BTC Forewarned = fore-ready,” he explained in a recent tweet while referencing the below chart.
As the weekend wraps up and a fresh week of trading kicks off, it is highly likely that this aforementioned chart pattern will either be validated or invalidated, so how BTC responds to its current downwards pressure in the near-term is critical for its near-term price action.