Bulls beware: fractal suggests Bitcoin will soon plummet to yearly lows

Bitcoin (BTC) appears to be the best performing major asset in the world so far in the new decade, as it has been able to post a massive climb from its recent low of $6,800 that was set in the early part of Jan 2020.

BTC has been able to further extend this newfound momentum today, allowing it to tap its key near-term resistance before facing a slight sell-off.

It is important to note that bulls are contesting this resistance level at the moment, which has led many investors to think that a break above this level is inbound.

In spite of this, an eerily accurate fractal pattern is now suggesting that Bitcoin’s visit to $9,000 could mark a mid-term top for the cryptocurrency, which could subsequently be followed by a drop towards $7,000.

Bitcoin Struggles to Break $9,000 Despite Strong Momentum

It appears that Bitcoin is currently facing a significant amount of selling pressure at $9,000, as its strong upward momentum has not been enough to decisively propel the crypto above this level.

In the near-term, analysts are closely watching to see how it responds to this price point, with a break and sustained hold above this level potentially being enough to send BTC up towards $10,000.

Before hitting $10,000, however, the significant amount of sell orders that currently sit at around $9,200 could prove to be one more hurdle the crypto has to jump over before it makes a strong movement towards the coveted five-figure price region.

This Fractal Suggests $9,000 Could Be a Mid-Term BTC Top

One factor that should be kept in mind is that Bitcoin’s current price action is closely mirroring a bearish fractal formation, which—if this eerily close correlation is to continue—suggests that BTC may soon face a decisive rejection at $9,000 that leads it into the $7,000 region.

NebraskanGooner, a well-respected cryptocurrency trader and analyst on Twitter, spoke about this striking fractal in a recent tweet, noting that it could soon be confirmed if BTC is rejected at the trendline he references in the below chart.

“Fractal update: This is crazy! Price rejected at almost the exact dollar as the mini-fractal showed. If it holds true, the top could be in. Wait for confirmation of this trend line hold as resistance. According to this, shorting a retest of 9k is the next play before 7k,” he explained.

Bitcoin BTC
Image Courtesy of NebraskanGooner

How Bitcoin trend in the coming hours and days should clarify the validity of this fractal, but it is something that highly bullish traders should keep in mind.

The post Bulls beware: fractal suggests Bitcoin will soon plummet to yearly lows appeared first on CryptoSlate.

Original source: https://cryptoslate.com/bulls-beware-fractal-suggests-bitcoin-will-soon-plummet-to-yearly-lows/

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