Much to the chagrin of investors and bulls alike, Bitcoin (BTC) was unable to hold above the key support that had been established within the lower-$7,000 region, as it posted a swift break below this support during a sharp selloff that occurred earlier this morning.<\/p>\n
This sell off may cut deeper in the near-term, but one analyst is now entertaining the possibility that it is actually part of a larger bull-favoring pattern that could result in a spring-loaded rally that sends BTC back towards the five-figure price region.<\/p>\n
At the time of writing, Bitcoin<\/a> is trading down over 3% at its current price<\/a> of $6,950, which marks a slight decline from its 24-hour highs of roughly $7,200, and an even steeper decline from its multi-day highs of $7,500 that were set this past weekend.<\/p>\n It is imperative to note that Bitcoin has been holding strong above the $7,000 region for several weeks now, with bulls defending this support in spite of the multiple rejections it faced around $7,500.<\/p>\n In the short-term, it is a good sign that buyers<\/a> have been able to absorb enough of the current selling pressure to stop the crypto from falling to its established support around $7,500, but the current support could quickly fade away if bulls are unable to generate any momentum in the coming hours.<\/p>\n Financial Survivalism, a popular cryptocurrency analyst on Twitter, recently brought up the possibility that BTC is currently laying the groundwork to post a Wyckoff Spring formation, which could mean that it will drop to the lower-$6,000 region before posting a massive bounce.<\/p>\n \u201cPossible $BTC fractal that I will be keeping a close eye on. Would line up very nicely with a Wyckoff Spring,\u201d he said while pointing to the charts seen below.<\/p><\/blockquote>\n Possible $BTC<\/a> fractal that I will be keeping a close eye on. Would line up very nicely with a Wyckoff Spring. pic.twitter.com\/qD9MjNRhLT<\/a><\/p>\n — Tyler Coates (@Sawcruhteez) January 2, 2020<\/a><\/p><\/blockquote>\n\n