Bitcoin Forms Parabolic Trendline, But Veteran Trader Eyes Potential Correction
- Bitcoin and the entire cryptocurrency market have been caught within a parabolic advance as of late, with BTC leading the charge as altcoins follow its lead
- Where the cryptocurrency trends next will undoubtedly depend on whether or not bulls can maintain control of its price action as it approaches $30,000
- This rally is nothing short of parabolic, with Bitcoin tapping a half a trillion-dollar market cap yesterday evening
- One veteran trader is now pointing to a parabolic trendline that the cryptocurrency has formed over the past couple of months
- He notes that although this is holding strong for now, there’s a strong possibility that the crypto could see a correction below the trendline in the mid-term
Bitcoin and the entire crypto market have surged higher over the past 24-hours. Bulls took full control of BTC overnight, sending its price rocketing to highs of $28,500 overnight before it faced some intense selling pressure.
This selling pressure has caused its price to shed over $2,000, marking a serious decline. Bulls are now trying to flip the previous resistance within the mid-$26,000 region into support, but it remains unclear whether they will be successful.
In a recent tweet, one trader stated that he fully expects Bitcoin to eventually invalidate the parabolic trendline that it has been forming as of late.
That said, he doesn’t expect too deep of a correction.
Bitcoin Sees Strong Rejection Following Explosive Rally to $28,500
At the time of writing, Bitcoin is trading up just under 1% at its current price of $26,700. This is around the price at which it has been trading throughout the past day.
Overnight it rallied as high as $28,500 before it lost its momentum and slid lower, with buyers now trying to stop the crypto from sliding any lower in the near-term.
Its current price has proven to be a strong level of support over the past few days.
Veteran Trader: BTC Forming Parabolic Trendline as Uptrend Continues
One veteran trader explained in a recent tweet that this recent move higher has further validated the existence of a parabolic trendline.
He notes that while this trendline may soon be invalidated, he doesn’t expect any intense decline.
“BTC is advancing in parabolic move from Sep ’20 low. I expect this curve to be violated at some point, but not to produce 80% decline. Green curve is a larger parabolic advance from Dec 2018 & Mar 2020 lows. This is the driver of bull market.”
Image Courtesy of Peter Brandt. Source: BTCUSD on TradingView.
The coming few days should shed some light on just how far this parabolic advance will reach in the mid-term.
Featured image from Unsplash. Charts from TradingView.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Cole Petersen, @Khareem Sudlow