Bitcoin price is experiencing a surge of intraday volatility, rocketing $150 in minutes then collapsing more than $250 just moments later.
Here’s what is going on in the top-ranked cryptocurrency and what to watch for as price action to develops.
Triangle False Breakout Rejects Bulls Back Below Resistance At $11,500
Bitcoin’s notorious volatility is back after a short-lived phase of tranquility. Explosive price action this week following a bullish breakout of a downtrend line on the heels of Square news sent the cryptocurrency well above $11,000 and kept climbing.
Bulls Rejected After False Descending Triangle Breakout | Source: BTCUSD on TradingView.com
Resistance above $11,750 proved too strong to penetrate and the leading crypto asset by market cap fell lower, where a triangle began to form.
Related Reading | Analyst: Sidelined Capital Enough To Push Bitcoin To $1 Trillion Market Cap
This morning, a false breakout of the upper trendline baited bulls into a fierce rejection, resulting in a sharp drop of $250 lower.
Bearish Bitcoin Chart Pattern Points To Retest Of $11,000, Will It Hold?
Zooming out further, shows the descending triangle breaking down with a potential target of $11,000.
Descending Triangle Bearish Breakdown in Progress | Source: BTCUSD on TradingView.com
Bears have a chance of pushing Bitcoin back down toward $10,000 if bulls cannot defend the key support level. However, if the crypto asset can reclaim $12,000, chances of a higher high in 2020 will become a lot more likely.
Related Reading | Dwindling Bitcoin Volatility Could Lead To Decisive Move
The current price level is a pivotal range where whichever way breaks, could set the trend for the rest of the year and into 2021.
Featured image from Deposit Photos, Charts from TradingView.com
This post was originally published on www.newsbtc.com