Bitcoin Traces an Ominous Chart Pattern Evoking Plunge in June
The latest Bitcoin chart pattern indicates that cryptocurrency speculators should brace for more losses.
The largest digital token has traced a so-called rising wedge, which technical analysts view as the calm before the storm – a temporary hiatus in episodes of often intense downward pressure on an asset’s price.
A rising wedge also appeared between May and June, stopping Bitcoin’s earlier dramatic decline. Still, it was followed by a 42 percent decline that brought the virtual currency down to $17,600 from over $30,000.
After falling by 57 percent this year due to tightening monetary policy, the collapse of leveraged crypto companies, and a gloomy attitude in global markets, opinions are divided on whether the cryptocurrency has found a floor around $20,000.
According to most respondents in the most recent MLIV Pulse survey, the token is more likely to fall to $10,000 than to reach $30,000. It decreased by around 2.4 percent to $19,927 on Tuesday at 12:10 p.m. in Singapore.
Craig Erlam, a senior market analyst at Oanda, stated in a note that “not only is the larger market climate not in its favor, even if the occasional bear-market bounce offers some hope, but the crypto community isn’t exactly booming either.”