Bitcoin closed the day lower after incurring a strong influx of selling pressure that forced it to close below the key psychological price level of $10,000, a price at which the cryptocurrency has previously found some levels of support.
Despite this recent bearishness, Bitcoin is currently inside of a technical formation that results in an upwards price swing 68% of the time, which may mean that BTC will soon begin a fresh upwards surge that allows it to climb back towards its all-time-highs.
Bitcoin Plummets Towards $7,000 as Selling Pressure Mounts
At the time of writing, Bitcoin is trading down 2.5% at its current price of $9,755, which is down significantly from its daily highs of roughly $10,200, which were set earlier today just prior to the series of downwards legs that led the cryptocurrency to its current price levels.
While looking at Bitcoin’s seven-day price action, it is clear that the cryptocurrency’s bears are currently in control, as it has faced swift rejections each time it has attempted to surge higher.
One prime example of this can be seen while looking towards BTC’s price action this past Saturday, as the crypto sharply rose to over $11,000, before facing a sudden influx of selling pressure that instantly sent it reeling lower.
Chonis Trading, a popular crypto analyst on Twitter, spoke about Bitcoin’s current price action in a recent tweet, telling his nearly 40k followers that it is currently nearing a period at which it exits its consolidation period and makes a big move.
“$BTC – right at the time when #bitcoin makes a break from consolidation pattern and volatility expanded for days,” he explained while pointing to the below chart.
Technical Pattern Signals That Bullish BTC Movement is Statistically Probable
While considering the fact that it is highly likely that Bitcoin soon experiences a volatile move, one technical formation is signaling that this move may actually be highly bullish, despite the current selling pressure that the cryptocurrency is facing.
Galaxy, another popular crypto analyst on Twitter, explained that the Bulkowski falling wedge that BTC is currently trading in breaks upwards 68% of the time, and a break above the upper boundaries of this wedge could spark a massive movement.
“Not much time before this can turn into reality. According to Bulkowski falling wedges break upwards 68% of time. This is just a pit stop on the race to $100K,” he explained.
As Bitcoin continues to react to its newfound bearishness, it is highly likely that the aforementioned falling wedge will either be validated or invalidated, which could signal which direction the crypto is heading next.