Bitcoin reaches R406K as bearish analysts predict a 'double top'
As weekend trading creates some classic volatility, a casual dash over the R406K level is totally retraced. On August 14, Bitcoin (BTC) broke through R406K for the first time in months, but traders declined to bet on a bull run.
Weekend generates a quick R406K tap for BTC
Cointelegraph Markets Pro and TradingView data showed a sharp rise in BTC/USD, which reached R407K on Bitstamp in an R5.6K hourly candle.
The pair reached a new personal record on June 13, erasing more of the losses observed that day in what remains a major BTC price correction.
However, after analyzing the market setting, the usual bearish tones remained.
The newest highs appeared to be the final piece of the puzzle before a fresh downtrend kicked in for the prominent Twitter account, Il Capo of Crypto.
Il Capo earlier predicted a peak of $25,000–$25,500 (R406K–R414K) before Bitcoin reversed course and began to fall. "$25k (R406K) attained but no negative indicators on ltf yet," it noted in a later post.
"We could see another run up to 25400-25500, but I believe the bottom of this bear market rally is near. Most altcoins have encountered significant resistance."
Crypto Tony, a fellow trader, was also cautious, demanding that Bitcoin flip its multi-month range resistance at R398K to support before considering long bets. Others, such as Dave the wave, were optimistic about the trend's persistence, pointing to favourable indicators on Bitcoin's moving average convergence divergence (MACD) indicator as validation.
MACD is a classic trend indicator that allows traders to gauge the strength of a certain chart trend while also providing buy and sell signals across several timeframes.
"A lot of upward pressure building at a resistance level," he described the day.
"Weekly MACD is set to cross the zero-line from an oversold position. Bullish."
