The Analysis of Bitcoin Price and its Recent Consolidation
The bitcoin price has risen considerably in value in recent days. The price thus rose to the important resistance point at $31,500, but was unable to break above it. Analyst Nebraskangooner therefore shared that he is “skeptical about bitcoin for the first time in a long time.”
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Bitcoin Price Forms Double Top?
In the tweet, Nebraskangooner, an analyst and trader, shares bitcoin’s 4-hour chart. Although the rise is a positive development in itself, the fact that BTC cannot continue to steam ahead is cause for concern. The analyst wrote in his tweet:
“This is the first time in a long time that I feel skeptical about bitcoin.”
The doubt likely stems from the fact that bitcoin failed to break through the resistance near USD 31,500 for the second time. There is therefore a risk that this is a so-called double top, or double top formation. This is seen by traders as a negative pattern.
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Bitcoin Bulls Should Hope for This Scenario
However, the same analyst later shared a scenario in which the situation is still positive, or bullish can unpack. That would be the case if the rate from this point is a cup-and-handle pattern.
This pattern is characterized by a rise to a resistance, followed by a correction (cup). After the correction, the price rises again to the same resistance but is rejected there again. However, the second time around, the correction in this pattern will be less deep (handle). This forms a cup with an ear on the graph.
“Bulls want to see a cup-and-handle shape and breakout to support this uptrend.
I’m still skeptical, but have now posted all my data points.”
In contrast to the double top, a cup and handle pattern is positive. In the coming period it will therefore be important to keep a close eye on the BTC price.