Bitcoin Forming a Possible Diamond Pattern, BTC Back to the Upper $8,000s?
- Bitcoin can break in either direction out of the consolidation
- Bears sweating bullets right now: crypto trader
Bitcoin doesn't seem to let go off the $600 range it is stuck in. Each day, it takes a jump and crosses $8,000 giving us hope that today might be the day when the flagship cryptocurrency will make it good above $8,000 level, but till now it hasn’t.
Todays’ BTC/USD range has been $7,821 and $8,091 while currently trading at $8,003 with 24 hours gains of 2.36 percent.
“Possible diamond forming on BTC,” states trader, Jonny Moe who shares that diamonds can be tricky as the shape can change as they form.
Possible diamond forming on $BTC. Diamonds can be tricky as the shape can change as they form, but worth keeping an eye on.
Can break either direction out of the consolidation, but typically a reversal pattern which would send us back into the upper $8,000s. pic.twitter.com/d7lG0lwAod
— Jonny Moe (@JonnyMoeTrades) June 12, 2019
A diamond top formation is a technical analysis pattern that can be used to detect a reversal following an uptrend or downtrend. The pattern occurs when a strong trending price shows a flattening sideways movement over a prolonged period of time that forms a diamond shape.
Though generally uncommon, they do form a strong indicator for reversal. Diamond top formations occur at the end of an uptrend while diamond bottom forms at the end of a downtrend.
Moe says Bitcoin can break in “either direction out of the consolidation” but typically does in a reversal pattern that he says would send us back into the upper $8,000s.
— Alex Krüger (@krugermacro) June 11, 2019
Bears Sweating Bullets Right Now
Meanwhile, trader Benjamin Blunts shares how there are more bears calling out for Bitcoin to drop in $5,000 to $6,000 range there are bulls calling for new highs.
The call for the drop has been made in the last few days after Bitcoin saw an amazing rally that first took BTC from $4,000 to 5,500 in April and then in May, we surged 60 percent to $9,100.
A proper retracement back to the $6,000 level would be healthy for the market argue analysts. Moreover, during the last bull cycle we saw the world’s top cryptocurrency recording about nine such retracements of about 30 percent, offering a buy the dip opportunity. These dips followed more than 100 percent gains before another major drop occurs.