Bitcoin (Bitcoin) Maintained the $34,000 support level on Wednesday, as the rebound from the six-month low showed amazing resilience.
Bitcoin bulls see similarities in 2020
Data from Cointelegraph Markets Pro with Transaction view After a disturbing day of volatility, BTC/USD stabilized on Wednesday.
At the time of writing, Bitcoin is close to $34,500 supported by daily gains, a gain of more than 15%.
Although the latest price trend Didn’t convince everyone The bottom has arrived, and it will fall to US$28,600 as a surrender in the context of negative news from China, similar to the US$30,000 flash crash in May.
For Mike McGlone, senior market strategist at Bloomberg, there is no reason to reassess the long-term bullish view of Bitcoin.
He argued that after the 60% price plunge in March 2020, $30,000 is like $4,000—this is the “sand middle line”.
“Selling Bitcoin near a good support level and in most cases a similar decline means that this year about $30,000 has not ended well. If the key question this time is whether it is different, we will see A longer-lasting bull market,” he said Explanation.
Wyckoff signal frightens traders
At the same time, among the more cautious voices, there is a popular trader, Rekt Capital, who paid close attention to the possibility of Bitcoin’s realization of a negative Wyckoff pattern to exit the downside on Wednesday.
“All in all, if BTC loses its current downward trend wedge structure… BTC will enter the E phase of the Wyckoff distribution,” he said caveat.
“If $BTC breaks out from here and is severely rejected from the red area above… E-phase may also be ahead.”
China’s crackdown on the mining industry is the main driver of the current price weakness, which has left critics divided.
related: Chinese Bitcoin miners “not even in the mood to drink”
in a Interview With mainstream media, Saifedean Ammous, author Bitcoin standard And its sequel, Fiat Standard, Thinking that miners who were forced to relocate from China are selling the BTC they would have held, causing additional price pressure.
He added that the coins involved have probably been shelved for a long time, which has increased the bearish sentiment as the monitors discovered the movement of coins that had not moved for a long time.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.