Bitcoin (BTC) supported $34,000 on Wednesday as the six-month slowdown showed surprising resilience.

1 hour light chart of BTC/USD (Bitstamp). Source: TradingView
Bitcoin bulls see parallels in 2020
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair settled on Wednesday after a day of nervous volatility.

At the time of writing, Bitcoin is close to $34,500 due to daily gains that peaked at 15%.

Although the recent price action didn’t convince everyone that the bottom had reached, it did drop to $28,600 as a capitulation event amid negative news out of China, similar to the sudden crash that occurred in May of $30,000.

There was little reason for Mike McGlone, chief market strategist at Bloomberg Intelligence, to rethink his long-term bullish outlook for bitcoin.

He claimed that $30,000 was about $4,000 after a 60 percent accident in March 2020 – a “line in the sand.”

“Bitcoin selling with good support and the like is within most of the funds, which means that around $30,000 this year has ended poorly, and if the main question this time is whether it will change, we will see a more resilient beef market.” – It is to explain.

Comparison of $30,000 and $4000 for Bitcoin. Source: Mike McGlone / Twitter
Wyckoff refers to the fearsome merchants
Meanwhile, one of the more cautious voices was popular trader Rekt Capital, seeing on Wednesday that Bitcoin meets a negative Wyckoff pattern to go at a disadvantage.

“Generally speaking, if BTC loses its current wedge structure… BTC will fail phase E of the Wyckoff distribution,” he warned.

“If $BTC breaks out from here and deviates sharply from the red area above… Phase E could be in the foreground as well.”

Wyckoff negative prediction chart for bitcoin. Source: Rekt Capital / Twitter
China’s violence against the mining industry, the main driver of today’s price drop, has divided commentators.

Related: Chinese Bitcoin Miners ‘Not in the Mood to Drink Anymore’

In an interview with mainstream media, Saifedan Ammous, author of The Bitcoin Standard and its successor, The Fiat Standard, argued that miners forced to relocate from China were selling BTC as they would otherwise, creating additional pressure on prices.

He added that the currencies in question may have flipped for a long time, adding to the bearish sentiment as observers monitored the movements of currencies that had not moved for a noticeable period of time.

Source: CoinTelegraph