The price of Bitcoin (BTC) dropped to $ 9,100 on May 15 after being sharply declined to $ 9,900. In the short term, traders are still expecting a further increase in the USD 10,000 range or at least the USD 9,800 resistance level. According to Coinmarketcap, Bitcoin’s market cap is currently $ 172,223,914,411.
Daily price chart of the crypto market. Source: Coin360
Bitcoin at a critical point that can determine its trend in the third quarter of 2020
The Top traders expect Bitcoin price to rise to $ 9,800 after the price showed a classic technical pattern known as a falling wedge break.
Over the past 36 hours, the price of Bitcoin has dropped from $ 9,970 to $ 9,100without trying a significant recovery. This led Bitcoin to consolidate below a declining trend line with relatively little volume.
Bitcoin breaks out of a short-term trend line. Source: Satoshi pinball machine
However, on May 16, Bitcoin’s price hit its first clean break since May 14, hitting a local high of over $ 9,900. Bitcoin’s price hike from an important support zone at $ 9,200 created a solid foundation lead a short-term rally towards higher resistance levels for the Bitcoin price.
Crypto trader Satoshi Flipper said::
Classic descending wedge break, then test again. I hope for another shot at 9.8000.
Whether the bitcoin price will continue the upward trend above $ 10,000 in the near future is another question. Even if the BTC rises to $ 9,800, there are two scenarios that make a downtrend and an uptrend equally likely.
The bearish and bullish scenarios for the price of Bitcoin
When the price of Bitcoin rises to $ 9,800 and declines similar to a sharp drop of $ 9,970, makes Bitcoin vulnerable to three consecutive lows in a high time frame.
Simply put, after the rejections of $ 10,085 and $ 9,970, A breakout at $ 9,800 would indicate three rejections to a multi-year resistance area in a short time.
3 possible lowest consecutive highs on the Bitcoin daily chart. Source: trade view
A Bitcoin’s brutal $ 9,800 rejection would result in a significant short-term withdrawal. The likely support levels are $ 6,800, 7,100, 7,700, and $ 8,100, which serve as potential correction areas.
The more optimistic scenario would present Bitcoin is recovering at $ 9,800 and a strong rally above $ 10,000. Such a move would shape historically accurate technical formations like a cup-and-handle pattern that could trigger another longer rally.
Bitcoin changes the balance of autumn. Source: Ceteris paribus
A consistent increase in Bitcoin withdrawals from exchanges This could reinforce Bitcoin’s bullish price scenario in the medium term.
Data from glassnode and Ceteris Paribus, the crypto trader, show this The stock exchanges’ balance sheets have dropped by around $ 3,000 million since the price of Bitcoin dropped to $ 3,600 on March 13.
Chain data indicate this fewer users and investors are driven to sell your coins at the current Bitcoin priceThis increases the likelihood of an extended Bitcoin rally despite the 160% price hike in the past two months.
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