In the past 48 hours, Bitcoin (BTC) has leveled off in the price range of $ 6,900 – $ 7,100. This area is just below the next major resistance at $ 7,200. When Bitcoin moves in a price range for a long time, a violent price movement usually follows.
There are currently three indicators suggesting that this strong move will go down: 1.) The recent upswing could only be a standard deviation from the current downward trend; 2.) The current price development is similar to the price development before the violent crash in March; 3.) The circulation quantity of the stable coin tether increases.
Standard deviation from the downtrend?
If the bitcoin price is rejected on the downtrend line, it usually means that the price is slipping to lower supports. Crypto expert Trader XO suspected this week that Bitcoin is currently moving along a downtrend line, which could lead the market-leading cryptocurrency back to the $ 6,300-6,400 range. Bitcoin was originally in this area in early April.
On the Coinbase crypto exchange, the bitcoin price has recently climbed to $ 7,200, which has skipped the downtrend line (at least here). The cryptocurrency is currently at $ 7,100.