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'Ominous' Bitcoin (BTC) Price Pattern Spotted by Top Market Analyst Jim Wyckoff

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Wed, 03/18/2020 - 14:31
Alex Dovbnya
The Bitcoin (BTC) price remains in limbo while the U.S. stock market opens in the red
Cover image via jimwyckoff.com
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Kitco's chief market analyst, Jim Wyckoff, has recently noted that Bitcoin is in the midst of forming a bearish chart pattern that could add more pain for the bulls in the short-term due to an ominous formation.   

As of now, BTC is trading at $5,213 after dipping by about two percent today. 

Related
Bitcoin (BTC) Price Expected to Retest $4,800 Before Surging to $6,000

Bitcoin is on shaky ground  

The formation that should spook the bulls is a bearish pennant, which resembles a triangular flag. It appears when a certain asset records an immense price drop and fails to recover. 

On March 12, BTC plunged by 38 percent, its third-biggest drawdown in history. Since then, the coin's price has continued moving sideways while forming lower highs.

According to trader Satoshi Flipper, BTC could retrace back to $4,700 if the bearish pennant eventually breaks down. 

Related
Here's Who Was Responsible for Bitcoin's (BTC) Historic Price Drop

Another sell-off on Wall Street

According to Wyckoff, the bears are still in control of the narrative. The fact that the U.S. equities market is currently in the middle of another sell-off certainly doesn't help. While the Dow managed to avoid the dreaded circuit breakers, it is still down by 4.7 percent (990 basis points) at the time of writing.

Given the uncanny correlation between BTC and the stock market, more carnage on Wall Street could certainly push BTC below $5,000.

 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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