Top cryptocurrency by market cap, Bitcoin, started the previous year 2019, barely beneath the $4000 level. However, by mid-2019, it had a wild run that pushed its price above the $13,800 handle. It experienced a retreat further into the latter part in the year posting lower rally attempts as the bears grasped a hold of the market.
The year 2020 started on a positivity note for the flagship cryptocurrency as it started the year close to the $7,000 mark. Analysts foresaw the chances of a retracement as it seemed to have bottomed the price chart when it hovered around $7,000.
By mid-January 2020, bitcoin climbed from nearly $7,700 to peak at $9,200 on the 19th of January, however, it experienced a slight retreat to gather support around $8,250 six days ago. At the time of writing, the BTC price stood at $9,372.
On BTC price movement, John Bollinger, trader, and inventor of the Bollinger band indicator said although positivity looms around BTC prices it may be too early to say it’s bullish in the long term trend.
In the last 72 hours, Bitcoin had risen significantly, capturing 4% market gain pushing past the $9,200 resistance to near the $10,000 mark, hitting a five-month high, the last it recorded such was late September 2019.
This recent price activity has brought questions to mind. The foremost question is if the flagship cryptocurrency has broken the jinx of the downtrend it started late last year? Bollinger opinionated that it may be too early to ascertain a long term bullish scenario, as it sure needs more evidence to predict such.
Is Bitcoin Hovering for an Extensive Retreat? Indicator Beams Red Signal
The bitcoin indicator that predicted the fall of bitcoin last year is again in red.
The GTI Vera Band, which monitors the bullish and bearish trend to determine price patterns, indicates that the beginning of the bullish BTC for the new year is set to be corrected, according to a Bloomberg report. The same index indicated a future problem on July 31, 2019, before BTC started a 31.8% decrease from $ 9,766 to $ 6,665 on December 18, 2019.
The indicator has already flashed twice this month, just before the top crypto coincided with slight drops.
The importance of BTC trends in the next few hours may prove to determine the direction in which the cryptocurrency will head in the days and even weeks to come.
Image credit: Stock Photo Secrets
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