From the $8,800 lows seen on Thursday, Bitcoin has registered a healthy rebound, recently retaking $9,200.
While this bounce off the lows has made many traders optimistic, the cryptocurrency remains on the edge of a cliff, a new analysis suggests. That’s to say, should prices fall or stagnate from here, BTC may find itself in a serious downtrend.
Bitcoin Must Hold Low-$9,000s
For the past eight weeks, Bitcoin has been in an uptrend from the $3,700 capitulation lows experienced in March. But with the ongoing stagnation in the low-$9,000s, a top analyst has begun to question the efficacy of the bull trend.
“Steady, reliable trend… they all break down sooner or later. This one’s showing subtle signs of weakness creeping into the HTF’s,” he wrote in reference to the chart below, which shows that Bitcoin is about to break below a key trend indicator, which supported the uptrend over the past two months.
The level that Bitcoin must hold, according to the indicator is ~$9,100, as it would confirm that the…
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Author: Nick Chong