The Last Time This Indicator Flashed, Bitcoin Dropped 38%; Now It’s Back
- Bitcoin has been facing some turbulence as of late, with the cryptocurrency’s price action greatly favoring bulls
- Each dip has resulted in aggressive buying pressure that leads it to new all-time highs, with the ongoing bull market turning into a full parabolic ascent
- The crypto is fast approaching $30,000, with this being a key level that could prove to be a major hurdle for the crypto to break above
- One analyst spoke about BTC’s outlook, explaining that where it trends in the mid-term will depend largely on its reaction to a rapidly emerging trend
- The last time the indicator he references flashed, the cryptocurrency saw a massive 38% retrace right before it was able to recover and see exponential growth
Bitcoin has been caught in the throes of a wild bull market over the past few months, and it is showing few signs of letting up as bulls continue absorbing just about every single dip.
The crypto is rapidly approaching a key level that has long been looked upon as a target for its growth at $30,000. This may prove to be one of the strongest resistance levels it has seen since breaking above $20,000.
One indicator is now forecasting an imminent retrace. If history rhymes, this indicator flashing could suggest that a 38%+ retrace is imminent before BTC sees exponential growth.
Bitcoin Gains Momentum as Bulls Target $30,000
At the time of writing, Bitcoin is trading up just over 1% at its current price of $29,300. This is around the price at which it has been trading throughout the past day.
Bulls have been vying to send its price up towards $30,000, but the selling pressure here seems to be rather intense.
Breaking above this level will be key for BTC to see its next phase of parabolic growth.
Indicator Suggests BTC Correction Could be Imminent
One trader stated in a recent tweet that Bitcoin’s Monthly Momentum Reading is at levels not seen in quite some time.
The last time it was this high, the crypto saw a rapid retrace that sent it reeling down 38% before it could post exponential growth.
“BTC Monthly Momentum Reading: Something interesting that I’ll be on guard for (interesting, but, not actionable by itself). The last and only time that $BTC saw a Monthly momentum reading this high we saw a 38% retrace & a recovery intra-month and continued exponentially.”
Image Courtesy of Mr. Anderson. Source: BTCUSD on TradingView.
The coming few days should provide some serious insights into where the entire market will trend in the mid-term.
If Bitcoin does face a strong rejection at $30,000, it could spark a similar retrace to those seen during past bull markets, ultimately seeing parabolic growth.
Featured image from Unsplash. Charts from TradingView.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Cole Petersen, @Khareem Sudlow