For forty days and forty nights, Bitcoin price has been trading above $8,000 but has repeatedly failed to hold above $10,000. A series of higher lows has kept buying strong, but the cryptocurrency has failed to gain the momentum it needs to break through the critical resistance.
The push and pull of buyers and sellers has brought Bitcoin to a decision point, and although most crypto traders are divided on the direction of any move, most top traders agree that a massive move is incoming.
Remembering Three Years of Cryptocurrency Price Action
After nearly three full years of a bear market, cryptocurrencies may soon be ready to break out. Failure to launch, however, could lead to disaster.
In late 2017, Bitcoin price rose to its current record high of $20,000, creating the highest touch of what has since become the top of a powerful downtrend line. Following an 80% fall, the cryptocurrency bottomed out at $3,200.
An echo-bubble later formed in early 2019, topping out in June 2019 at $14,000.
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In early 2020, crypto assets took off on over 100% rallies and Bitcoin once again found itself touching the top trend line. A strong rejection followed by the world first learning about the pandemic, caused a devastating selloff now referred to as Black Thursday.
The fall took Bitcoin price back to the bottom of the trend line, coinciding with the logarithmic growth curve. Bitcoin momentarily broke below the log line that had been supporting the asset’s long-term uptrend throughout its entire history.
The asset has since reclaimed the line in what is now considered one of the greatest shakeouts to ever occur in the crypto market.
It All Leads To This: Bitcoin To Make Decision Defining Move In The Days Ahead
After the Black Thursday selloff, Bitcoin price has rallied over 150% and has made several attempts to break and hold above resistance at $10,000.
Failure to do so, however, has yet to lead to a strong correction.
Not only is Bitcoin dealing with important psychological resistance, but the asset is also once again touching the top of the long-term triangle formed throughout the bear market.
Crunch time…. pic.twitter.com/OWWlg2XNyr
— dave the wave (@davthewave) June 8, 2020
All of the cryptocurrency’s most important lines are converging, even some of the longest term moving averages.
Bitcoin price has now been consolidating for more than six weeks, and the collective cryptocurrency market is in agreement: a massive move is coming in Bitcoin.
With so many critical supports and resistances converging all at once, any resulting move is bound to be explosive.
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A breakout of the triangle could cause a surge of FOMO buying, similar to the 2019 rally that pushed the price per BTC from $3,200 to $14,000 in a little over 90 days.
A breakdown, however, could be disastrous for the cryptocurrency.
Miners are currently struggling to remain profitable, and a deep crash in Bitcoin could cause mass capitulation of any of the weakest miners remaining, prompting them to liquate holdings. The capitulation of miners may cause a wave of panic selling that leads to a deep correction.
How deep it goes and if a correction happens at all is anyone’s guess. The only thing traders are agreeing on is that it is time to pay attention to prepare for the cryptocurrency’s next major move.