The price of Bitcoin (BTC) fell to $9,100 on May 15 after a strong rejection to $9,900. In the short term, traders still anticipate another rise in the area of $10,000, or at least at the $9,800 resistance level. According to Coinmarketcap, the current market capitalization of Bitcoin is USD 172,223,914,411.
Be sure to read: Bitcoin Forecast: What will be the price of bitcoin in 2020 according to the experts?
Bitcoin at a critical point that may decide its trend in Q3 2020
Major traders expect the price of Bitcoin to rise to $9800 after the price demonstrated a classic technical pattern known as a falling wedge break.
In the last 36 hours, the price of Bitcoin fell from $9,970 to $9,100, without attempting a significant recovery. This led Bitcoin to consolidate under a downward trend line with relatively low volume.
However, on May 16, the price of Bitcoin registered its first clean break since a local peak of more than $9,900 was reached on May 14. The rebound of the Bitcoin price from a key support area to $9,200 created a solid base for the Bitcoin price to lead a short-term rally to higher resistance levels.
Cryptcoin trader Satoshi Flipper said
Classic falling wedge break, then try again. Hoping to get another shot at 9,8000.
More than a billion dollars have moved crypto whales between Bitcoin Formula, Crypto Investor, Bitcoin Compass, Bitcoin Revolution, Bitcoin Method and USDT since the halving
Whether the Bitcoin price will see a continuation of the upward trend above $10,000 in the short term is another matter. Even if the BTC rises to $9,800, there are two scenarios that make a downward and an upward trend equally likely.
The downward and upward scenarios for the Bitcoin price
If Bitcoin’s price rises to $9800 and rejects similarly as it did when it fell sharply from $9,970, it leaves Bitcoin vulnerable to three consecutive lower highs in a high time frame.
In short, after the rejections of $10,085 and $9,970, a break to $9,800 would indicate three rejections from a multi-year area of resistance in a short period of time.
3 possible consecutive lower highs on the Bitcoin daily chart Source: Tradingview
A brutal rejection of Bitcoin at $9,800 would open it up to considerable short-term reversal. Probable support levels are at $6,800, $7,100, $7,700, and $8,100, which serve as potential areas of correction.
The most optimistic scenario would present Bitcoin recovering $9,800 and a powerful rally above $10,000. Such a move would imprint historically accurate technical formations such as a cup and handle pattern that could trigger a further prolonged rally.