After a brief run-up beyond $9,400 the Bitcoin trend has pulled back 2% and is languishing just above $9,150 now as the bearish trend gains momentum.
But some might say we haven’t been out of a bear market of late. Let’s take a look at some technical analysis to see what could be on the horizon for Bitcoin.
Bitcoin Trend Technical Analysis – The Impending Triangle Breakdown
As we can see in the image below, the brief rally this week failed to break above the triangle resistance, while yesterday’s losses are currently testing the triangle support.
It could go either way. If the support holds, Bitcoin could march towards $10,000 again, but if support gives way, expect a bigger drop.
The main areas of support are $9,000, $8,800 and $8,600, and if support fails there, we will likely see a drop down to around $8,000.
Bitcoin Hasn’t Been Bullish For a While
While the daily chart is looking like it could go either way, the bears do seem to be gaining more momentum, but this is nothing new according to trader, @LimitlessXBT.
According to the popular trader, Bitcoin has been in a bear trend for over a year, even during the bounce back from the March capitulation,
‘Bitcoin hasn’t made a higher high in a full year, so per definition,’ claims LimitlessXBT. ‘It’s not a bull market. BTC has made lower lows and lower highs consecutively for a full year, so per definition, it’s a bear market.’
And with the recent high of $10,460 below the highs in February, it means Bitcoin is technically still and has been in a medium-term bear market.