A crypto trader under a pseudonymous identity who had earlier predicted the crumbling of Bitcoin last year, believes and said that before launching itself to another rally, BTC is up for another test. The analyst had tweeted with the tweet name ‘Dave the Wave’ had said that it is possible for Bitcoin to continue consolidating its position for the remainder of the year. He says in his tweet,
“What if the major line of resistance first identified became a rough line of support for the price to grind down slowly over the course of the fourth quarter to meet the log growth curve? This would set up perfectly for the run-up going forward…”
An image taken from the Twitter feed:
For the past couple of days, Bitcoin has been witnessing some rocky price action. There is a sign of caution among investors in recent days because Bitcoin’s price around $10,000 suggests that price action in the coming few days will be important for understanding where it could be trending in the future. Bears tried to break support at $10,000 and they were almost successful at doing this. After pushing BTC to a new low at $9900, the cryptocurrency price saw a major spike which sent it upwards towards the mark ok $10,200
As of now, it is trading below the highs but it is showing signs of stability. One of the other analysts also noted that the latest slump has sent Bitcoin towards its multi-year trendline which was dismantled many weeks ago. He believes that a litmus test of this kind could easily trigger further upside which is not very far away.
Based on the pseudonymous analysts’ chart for cryptoanalysis, Bitcoin might be hovering above the initial resistance of the increasing triangle which was responsible for ending the 2017 bull run. This also kept the markets in a bearish phase for the next two years. Dave’s chart also showcases that the previous resistance as well as the logarithmic growth curve will touch base on December 31’ st, 2020. The analyst further says that the meeting of two support lines can trigger a major bull run in the market, that will spring up the prospects of Bitcoin making it to $120,000.
He said that the consolidation will give users, traders, and investors a golden opportunity to accumulate BTC in the buy zone and a few months until it comes back ready for its bull run.
Just a few hours earlier, Bitcoin was seen trading down a little over 1% at the price of $10,115. This is more like another price at which the crypto is trading in the past couple of days. Earlier yesterday, BTC price went down and plunged to levels of $9900 before the bulls came in and catalyzed a major upswing. Thanks to such an upswing, the bulls took it upward to new highs of $10,200. This is exactly the point when its momentum began slowing down and it began consolidating its position.