After inching higher yesterday, Bitcoin faced a somewhat strong rejection at just above $10,400, which has brought the cryptocurrency down towards its next key support level at $10,000. A failure for bulls to hold this level could mark a short-term trend shift that sends BTC significantly lower.
It is now important to note that one key technical indicator is pointing to the possibility that Bitcoin is gearing up for a massive movement, which means that the direction it will trend for the last several months of 2019 could soon grow increasingly clear.
Bitcoin Inches Lower After Facing Rejection at $10,400
At the time of writing, Bitcoin is trading down nominally at its current price of $10,330, which marks a slight drop from its 24-hour highs of nearly $10,500.
Bitcoin’s rejection at this price level signals an underlying weakness for the crypto’s bulls, as they were not able to advance the crypto’s price to its heaviest near-term resistance level at $10,800.
Chonis Trading, a popular crypto analyst on Twitter, explained in a recent tweet that one indicator is pointing to the possibility that a massive movement is imminent.
“$BTC – (volatility index) entering the zone where Massive #bitcoin Price Moves are born,” he explained while pointing to the below indicator.
$BTC – (volatility index) entering the zone where Massive #bitcoin Price Moves are born… pic.twitter.com/AIbr4zOWdn
— Chonis
Flux Trading Group
Will BTC Break to the Downside?
As for which direction this incoming movement could send Bitcoin, Chonis also explained that BTC is currently expressing some similarities to its 2018 price action, which could point to the possibility that a massive drop is imminent.
“$BTC – continued similarities between this current #bitcoin price action and that of 2018 in relation to the EMA12/26 on the daily chart…note the eventual resolution of the price and EMA consolidation and tightening was to the downside in epic fashion,” he said while pointing to the below chart.
$BTC – continued similarities between this current #bitcoin price action and that of 2018 in relation to the EMA12/26 on the daily chart…note the eventual resolution of the price and EMA consolidation and tightening was to the downside in epic fashion. #history pic.twitter.com/IoAHsxKVqX
— Chonis
The coming days and weeks could prove to be quite illuminating for analysts and investors alike, as BTC’s reaction to a drop towards $10,000 could set the tone for how the cryptocurrency will trend for the second half of the year.
Featured image from Shutterstock.
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