End Of The Road? Why A Bitcoin Price Surge to $28,500 Could Lead To A Crash

1 Mins read

The crypto market is finally seeing some green during today’s trading session, with the Bitcoin price rising above $27,000 for the first time since late August. Similar to that occasion, the cryptocurrency stands at a crossroads, but bulls should remain cautious, new data suggests.

As of this writing, the Bitcoin price trades at $27,200 with a 3% profit in the last 24 hours. Over the previous week, the cryptocurrency experienced a 9% gain, with the rest of the top 10 by market cap displaying similar price action but lagging BTC.

BTC price with small gains on the daily chart. Source: BTCUSDT on Tradingview

Bitcoin Price Fractal Spells Doom For Bulls

Pseudonym trader Rekt Capital has been closely monitoring a Bitcoin price fractal, forecasting a re-test below $20,000 for the cryptocurrency. The operation believes that BTC formed a double-top price pattern.

This technical indicator predicts downside pressure for the Bitcoin price. However, the spike in selling pressure seen in the chart may take some time to gain strength.

Bitcoin price BTC BTCUSDT Chart 2
BTC price fractal forecast trouble for the current small rally. Source: RektCapital on X

If the Bitcoin fractal above holds accurate, and if the cryptocurrency completes the double top, there is a high chance of a brief relief rally. In this scenario, the price of BTC could continue on its current trajectory and hit the $28,500 to $29,000 levels before declining into critical support.

The fractal could be invalidated if bulls can push the price of Bitcoin above $31,000 and into yearly highs, Rekt Capital believes. Other bullish scenarios in the long term involved a weekly close above the resistance created at around $29,000 and for $19,000 to hold as support in case of further downside.

No Liquidity, No BTC Rally

Additional data from crypto analytics firm TheKingFisher indicates that the current Bitcoin price rally could lose steam. As the chart below shows, upside liquidity for the current price action is limited.

Bitcoin price BTC BTCUSDT Chart 3
BTC price liquidation levels hint at a potential reversal. Source: TheKingFisher on X

On the contrary, big liquidity pools are sitting on the downside, waiting for big BTC traders to push prices into those levels. In the short term, $26,700 is a potential critical support in a spike in selling pressure.

Cover image from Unsplash, chart from Tradingview

Source link

Related posts

Shiba Inu Team Member Shares Update On SHIB Eternity Game, TREAT Token

2 Mins read
A recent update has revealed that the Shiba Inu team has been hard at work behind the scenes getting everything in place…

Unveiling Bitcoin’s Drop To $65,000: Here’s How Much BTC Miners Sold

2 Mins read
Bitcoin has faced a significant amount of selling pressure over the past week, according to the latest on-chain data. Expectedly, this bearish…

Innovative Block Size Upgrade Takes Spotlight at Bitcoin Cash Bliss Conference

1 Mins read
Following the BCH Bliss conference, a focal event for Bitcoin Cash enthusiasts held May 14-15 in Ljubljana, Slovenia, Jonathan Silverblood introduced a…



Leave a Reply

Your email address will not be published. Required fields are marked *