The recent upswing in the Bitcoin price flashes bullish signals while the bearish momentum seems to have ceased. The global market cap also is approaching crucial zones around $2 trillion, while the Bitcoin price is heading toward $29,000. A spectacular bullish layout appears to have been laid out over the crypto space, following which the majority of the tokens may undergo a massive price action at the earliest.
Meanwhile, some possibility of a bearish pullback is also expected as the price pattern appears to have been replicating the previous trend. During 2018, the BTC price formed a triple-top pattern at appeared around the 2018 tops, which resulted in a gigantic bearish trend. The price slumped hard further and dropped close to $3000 from levels around $19,000 to mark the bottom of the rally.
A similar pattern is believed to have formed presently, where-in the below-mentioned conditions also appear to have been met :
- The largest trading volumes are at the first top, then trading volumes decrease despite the price rise
- The second top is the lowest of the three to confuse market participants
- At the third top, a ‘false breakout’ occurred to knock out stop orders of shorts that were hiding behind the previous highs
- The final confirmation of the pattern will be when the price consolidates below the base, below $26630
The pattern is believed to be confirmed if the price slumps and hits the first target of $24,600 to $25,000. However, if the fractals from 2018 become valid, then the Bitcoin (BTC) price is expected to fall around $20,300. Interestingly, a CME gap is present at these levels which may also be filled.