Bitcoin (BTC) price increased from $ 10,995 to $ 11,200 in the last 12 hours. But while the driving force behind BTC has also pushed the price higher toward other cryptocurrencies, including Ether (ETH), important accounts and technical charts indicate that the likelihood of withdrawal is increasing.

The three factors that point to the decline are the Fear and Greed Index, potential Likoff pattern, and lots of resistance.

Cryptocurrency market data shows “greedy”
According to Crypto Fear & Greed index data from Alternative.me, market sentiment is greedy. The index has reached 75 points, and every time the index reaches its peak, bitcoin is corrected.

The last time the indicator reached a local peak in February 2020, when it reached 65 points. A month later, Bitcoin fell to $ 3596 on BitMEX.

Historical data shows that when the index reaches a new high, BTC tends to decline. But the way you measure mood is very subjective. For example, 30% of the index consists of social media and surveys, which cannot be quantified.

In a long-term bull market, cryptocurrencies may remain feverish for a long time seen in 2018 and 2019. For example, Bitcoin rose to $ 14,000 in June 2019 before retiring.

Bitcoin faces strong opposition
Over the past three days, Bitcoin's price has been adjusted from $ 11,200 to $ 1,100 three times. The measurements indicating bitcoin overheating are insufficient on their own. However, when combined with the appropriate market structure, the downside scenario argument can be strengthened.

Historically, fire resistance has developed between $ 11,500 and $ 14,000. So the chances of sellers trying to defend the $ 11,200 resistance range to $ 11,400 are still high.

When buyers break through a strong resistance area, the potential for further gains increases. Trader Michael Van de Pope explained that a flash above $ 11,200 could lead to a $ 1,100,000 meeting. He said:

“The critical threshold is still at $ 11,200. Breakthrough, then $ 11,500-11,700!”

Rafael Schulz-Kraft, Technical Director at Glassnode, expressed similar concerns. Referring to BTC's historical price cycles, he said:

“We Won't See BTC Under $ 10,000 Again” Episode 13. The last episode lasted one day. ”

Likov forming and head and shoulder model
Meanwhile, the well-known Bitcoin trader Philippelb points out that BTC / USD may form the Wyckoff pattern, which usually results in a sharp downtrend. Despite the viability of Wyckoff Formation, when combined with other accounts, the probability of the distribution stage increases.

The named trader also noted that BTC is facing a potential short head and shoulder (H&S) formation. In technical analysis, the H&S pattern is recognized as an indication of a market peak. The therapist said:

“Does anyone talk about a higher BTC explosion when it attracts the cleanest H&S in its history?”

Bitcoin appears on the buyer's side as it repeatedly tests the major resistance level. In the short term, it will face strong resistance and bearish patterns that could lead to a decline.

Source: CoinTelegraph

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