Bitcoin Saw a “Mega Rejection” at $9,200, And It Should be Worrisome for Bulls
Over the previous few days, Bitcoin (BTC) has stalled, discovering itself between a rock and a arduous place. Many analysts are at present undecided the place the cryptocurrency will go within the subsequent few weeks, although one prime dealer lately famous that BTC’s worth motion at $9,200 may be a precursor to extra draw back.
How Bearish Is Bitcoin’s Rejection at $9,200?
In the wake of Bitcoin’s flash crash at $9,200 final week, Haejin famous that this represented a “mega rejection” on a every day foundation. He particularly regarded to the truth that BTC noticed a bearish retest of the 200-day shifting common, collapsed out of a multi-week rising wedge, and did not surmount key macro resistance — three indicators displaying bears stay decisively in management.
— Haejin (@Haejin_Crypto) January 24, 2020
So what does this “mega rejection” imply for Bitcoin per Haejin? Well, it fulfills a bearish fractal that the commentator laid out.
Per earlier studies from NewsBTC, this Haejin final week identified that Bitcoin’s worth motion for the reason that $14,000 prime in June is eerily harking back to that seen within the 2018 bear market, with each cycles seeing a downward worth channel, an upward wedge-formed false breakout (just like the one we simply noticed), declining quantity, and indicators of capitulation.
Haejin then added that if BTC follows the precise path it did in 2018, the worth will quickly collapse again to the $6,000s, then Bitcoin will capitulate in March or April to fall as little as $three,300 by the point of the halving.
https://t.co/JhMTlE2zA1: Bitcoin Deja vu?
Here is a Members solely chart: Note the Inverse H&S on each fractals.
Also the three wave ABC worth constructs
The downward worth channel
The upward wedge
Potential Capitulation Volume
All inside four months? Hmmm. pic.twitter.com/hXNN53PI7B
— Haejin (@Haejin_Crypto) January 17, 2020
Can Bitcoin Bulls Step In?
Although this rising wedge breakdown is notably bearish, analysts haven’t given up hope that bulls will finally step in, negating the aforementioned fractal evaluation.
Just this week, analyst Filb Filb — who notably referred to as Bitcoin’s flash pump to the $9,000s and crash to the $6,000s in late-2019 — wrote in a current e-newsletter that he’s bullish on BTC heading into the block reward discount or “halving” slated to happen in May:
“Overall, Bitcoin is exactly where [I] anticipated; slowly grinding up towards previous resistance… I’m very much of the opinion that Bitcoin will reach to at least $12,500 level before the halving.”
As to why $12,500 is sensible, he famous that that’s the “top target” for a bullish inverse head and shoulders chart that’s forming on a medium-term foundation for Bitcoin.
There’s additionally Financial Survivalism, a dealer who in December referred to as BTC’s transfer into the $eight,000s and $9,000s we simply noticed, defined in an in depth TradingView submit that he thinks that BTC is on monitor to hit $20,000 by July 1st.
Survivalism cited a flurry of sturdy technical elements and the upcoming halving.
Related Reading: Key Google Metric: Bitcoin May Explode Into $100,000 Parabolic Rally
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