Bitcoin (BTC) has been caught up in intense volatility straits over the past few hours, with recent horizontal trading in the middle of $ 10,300, resulting in a huge drop towards $ 10,000.
The bulls were able to raise Bitcoin a little more after this drop and buyers tried to defend the key $ 10,000 psychological price level.
Now, however, it seems that the crypto is rapidly approaching a critical level of technical support that has occurred during the recent uptrend of the crypto, and a break below this level has opened the doors even more negatively.
Bitcoin Drops During the Sharp Overnight Movement Towards $ 10,000
At the time of writing, Bitcoin is trading just under 1% Current price Reached $ 10,240.
This drop first occurred overnight during a sharp move that dropped the crypto up to $ 10,100;
From this point on, Bitcoin was able to show some indications that it is stable at current price levels, and analysts state that this price action is a “liquidation game” and now makes BTC trading incredibly dangerous.
Josh Rager, a prominent cryptocurrency analyst on Twitter, talked about this in a recent tweet and stated that altcoins could continue their upward momentum as BTC moves sideways.
“Are you having fun yet? Apparently, BTC is a liquidation game. 4% down, 4% up, and then 4% back. There is no Bitcoin trading zone, but potentially keeping an eye on BTC, which can move sideways. ”
Are you having fun yet?
Looks like $ BTC catching offsets with high leverage was a liquidation game
4% down, 4% up, then 4% back
There is no Bitcoin trading zone, but potentially considering BTC that could move sideways pic.twitter.com/2scq0ktbsp
– Josh Rager 📈 @Josh_Rager photos on Instagram Account • Imgrab February 13, 2020
To Test BTC Critical Support Level
A byproduct of this move is that this recent decline has led BTC to the lower limit of a multi-weekly rising wedge created by krypton in the past few weeks.
Another popular crypto analyst on Twitter, Teddy talked about this rising wedge in his last tweet and referred to the table below.
“BTC Daily tried to break the rising wedge resistance, but was refused. It looks like we're going to do a third lucky retest – the bulls don't disappoint me, ”he said.
He tried to break the daily rising wedge resistance, but was refused.
Looks like we're going to do a third lucky retest – the bulls don't disappoint me (🌩️) pic.twitter.com/k4igropqe6
– TEDDY (₿) (@TeddyCleps) February 13, 2020
How crypto trends can give investors an idea of whether BTC will maintain its bull market structure or see other losses soon.
Featured image from Shutterstock.