The bitcoin price is pulling back after testing the $10,000 level three times in the past week. As the price trend of BTC eerily reflects its movement in October 2019, traders are anticipating a steep pullback.
How bitcoin failed to rise above important resistance
Throughout the past three weeks, the bitcoin price attempted to break out of a crucial resistance level at $10,500, which it rejected in October of last year.
Four months ago, after the bitcoin price abruptly surged from the $8,000s to $10,600 within less than 24 hours, it immediately rejected the $10,500 to $10,600 range, ultimately leading to a multi-month correction to the $6,000s.
At higher time frames, bitcoin is hovering under two key resistance levels at $10,500 and $9,800.
Traders are anticipating $10,500 to have been the local top and expect the dominant cryptocurrency to consolidate after a near 50 percent rally.
In previous bull cycles, bitcoin saw large pullbacks following rallies of around 40 to 50 percent.
The $9,300 support level weakening for bitcoin (source; Hsaka Twitter)
Reputable traders like DonAlt have pointed towards $7,700 as the potential target of the consolidation, especially if the weekly candle of bitcoin closes below $9,700.
So far, the short-term price trend of bitcoin in the past month replicates the reaction to the previous rally of BTC to $10,600 in 2019, making it vulnerable to an extended correction.
A pullback at this time would provide would provide balance to the market for long-term prosperity, as some whales have described the recent upsurge as irresponsible manipulation.
Joe007, one of the largest whales on Bitfinex, said:
“Funny how it’s manipulation only when the price crashes.