{"id":411216,"date":"2020-01-16T10:28:53","date_gmt":"2020-01-16T10:28:53","guid":{"rendered":"https:\/\/wncen.com\/?p=411216"},"modified":"2024-06-11T13:40:36","modified_gmt":"2024-06-11T13:40:36","slug":"bitcoin-just-rejected-8900-in-a-short-term-top-structure-traders-fear-bear-trend-isnt-over","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-just-rejected-8900-in-a-short-term-top-structure-traders-fear-bear-trend-isnt-over\/","title":{"rendered":"Bitcoin Just Rejected $8,900 in a Short-Term Top Structure: Traders Fear Bear Trend Isn’t Over"},"content":{"rendered":"

The bitcoin price rose to as high as $8,916 across major cryptocurrency exchanges like BitMEX and Binance on January 15. Since then, BTC fell by three percent in a typical short-term top formation.<\/a><\/p>\n

Lower time frames indicate a double top structure, which normally suggests that the asset tried to break above a key resistance level twice in a short time frame and failed.<\/a><\/p>\n

$8,900 has acted as a heavy resistance level since late October. BTC has breached that level for the first time since mid-November, 2019.<\/p>\n

What’s next for bitcoin in the short-term?<\/h2>\n

On December 21, 2019, the bitcoin price dropped to $6,410 on both spot and large-scale margin trading platforms<\/a>. It marked a near-term bottom, printed a classic inverse head and shoulders pattern, and surged by 39 percent within a month.<\/p>\n

After a near 40 percent rally, a pullback is necessary. Following an abrupt overnight rally, it is healthy for an asset to correct, as it strengthens the macro trend of the asset.<\/p>\n

Although a pullback has been anticipated after such a large upsurge in merely a weeks time, some traders are considering the possibility of the bear trend not being over yet.<\/p>\n

\"bitcoin
The bitcoin price dropped by more than three percent after failing to break out of $8,900 (Source: TradingView)<\/figcaption><\/figure>\n

One prominent cryptocurrency trader wrote<\/a>:<\/p>\n

“If you’re struggling to mark out basic market structure, then switch to a line chart and have a look at the weekly.\u00a0 See a lot of charts flying around trying to illustrate that BTC has broken its bearish market structure. It hasn’t.”<\/p><\/blockquote>\n

In a way, the recent breakout of bitcoin above $8,900 echoes the trend the market saw in in the last week of October<\/a> when the bitcoin price rose to $10,600.<\/p>\n

In 2 days, the bitcoin price increased by 43 percent from $7,400 to $10,600, and proceeded to fall by 40 percent in the following two months.<\/p>\n

Fears of a deeper correction in the short-term are arising because of the magnitude and the speed of the rally.<\/p>\n

The move to $8,900 was somewhat expected throughout the past two months, but its large overnight rally and the explosive recovery of the altcoin market rattled many traders.<\/p>\n

Are altcoins leaving BTC vulnerable?<\/h2>\n

As billionaire cryptocurrency investor Mike Novogratz said, it was difficult for even investors that have been involved in the market for a long time to see altcoins rally in the manner it did in the last 72 hours.<\/p>\n

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I\u2019m not sure I understand the altcoin rally. Happy for those making money on it. But not sure what changed. Maybe new year, new money, new enthusiasm. Dinner in NYC for best explanation.<\/p>\n

— Mike Novogratz (@novogratz) January 15, 2020<\/a><\/p><\/blockquote>\n