Bitcoin has been on a bull run since the start of 2019, after bottoming in December 2019. Momentum picked up with a $1,000 candle in April and the crypto asset was off to the races ever since.
But now the race appears to be coming to an end, and Bitcoin could cross the finish line soon with a break of a multi-month trendline that has been supporting Bitcoin price thus far and preventing the crypto asset from falling below $10,000.
Bulls In Trouble if Multi-Month Bitcoin Trendline Breaks
Following April’s $1,000 candle in a matter of an hour that set off a domino effect of crushing altcoins and causing Bitcoin to go parabolic, the crypto asset experienced only a few small corrections before breaking back above the important FOMO trigger level of $10,000 where it’s been for the last few months.
One of those minor corrections involved a test of support at $7,500. From there, a trendline was born that yes yet to break, despite three or four tests of it as support. Bitcoin price is currently just above that trendline, and a clean break below it could spell disaster.
In fact, one crypto analyst says that a break of this important trendline “means it’s all over” for bulls. A strong break below could cause Bitcoin to retest the horizontal support at $7,500 where the trendline was born from.
Interesting to see the chart play out after I called the top 2 months ago.
Waiting for this trendline to break.
A daily close below means it’s all over.
— Imperator_Official (@ImperatorTrades) August 22, 2019
The bottom trendline is also the bottom of a symmetrical triangle that’s formed over the last few months after Bitcoin price topped out at $13,800. Since then it has bounced back and forth between peak and trough, forming the geometrical chart pattern.
Symmetrical triangles are typically continuation patterns but can break up or down. Because Bitcoin price is currently at the bottom of the formation and bottom of the important multi-month trendline that has supported price from falling further thus far, a breakdown is likely unless bulls can make a strong push toward the top of the triangle, and break above around $11,750 and close a daily candle.
Beyond the break of the trendline, a bearish breakdown from here could cause widespread panic across the already shaken crypto market, which is sitting at its lowest level on the fear and greed index in the history of the metric.
The market is already fearful after altcoins have fallen so significantly relative to their BTC ratios. A drop in Bitcoin could either cause altcoins to rally, or further drag down their USD values if they fall further. All this depends on what Bitcoin does from here, and the entire market will be watching and waiting to see what happens next.