{"id":422071,"date":"2020-04-28T09:40:32","date_gmt":"2020-04-28T09:40:32","guid":{"rendered":"https:\/\/uniquehot.com\/?p=422071"},"modified":"2024-06-11T07:04:12","modified_gmt":"2024-06-11T07:04:12","slug":"last-time-bitcoin-saw-this-formation-was-before-a-20-crash-its-back-making-6ks-likely","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/last-time-bitcoin-saw-this-formation-was-before-a-20-crash-its-back-making-6ks-likely\/","title":{"rendered":"Last Time Bitcoin Saw This Formation Was Before a 20% Crash. It’s Back"},"content":{"rendered":"

The past few weeks have seen Bitcoin<\/a> push higher and higher every few days, establishing higher low after higher high after higher low on the back of an influx of buying pressure. But, according to a number of crypto traders, BTC is preparing to see a correction as the charts signal caution.<\/p>\n

Related Reading: Crypto Tidbits: Bitcoin Surges to $7,800, More U.S. Stimulus, Tether Erupts<\/a><\/h6>\n

This Exact Formation Was Seen on Bitcoin’s Chart Prior to a Dump<\/h2>\n

One crypto trader recently remarked<\/a> that despite Bitcoin’s rally, the chart of the cryptocurrency is currently looking somewhat precarious.<\/p>\n

Pointing to the chart that can be seen below, he suggested that the price action that has transpired over the past five weeks has created a very similar formation to that seen at the start of March 2020.<\/p>\n

The formation is marked by a number of things: 1) a number of bearish relative strength index (RSI)<\/a> divergences at the top; 2) an extended rising wedge pattern, which is textbook bearish; and an ascending triangle that fails, breaking lower.<\/p>\n

\"bitcoin
Bitcoin prints a strong sell signal at low time frame (Source: Coiner Yadox)<\/figcaption><\/figure>\n

This formation is important as it formed just\u00a0prior to a drop from $9,300 to $8,700 and then $7,700 just days later \u2014 a 20% crash in the four days after this formation formed.\u00a0Should this formation play out as it did last time, there’s a good likelihood Bitcoin will fall to the low-$6,000s in the coming days, just days prior to the halving.<\/p>\n

Adding to the bearish confluence, the trader observed a confluence of key resistance levels in the current BTC’s range, which would suggest the rally is soon to come to an end.<\/p>\n

Technically important levels in the current range include but are not limited to:<\/p>\n