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USDT$1.000149

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Classic bearish chart pattern forms for Bitcoin as BTC price tumbles to $32K


22 Jun 2021

#Bitcoin

Bitcoin (BTC) bulls should look for a cover, at least as far as chart technicals are concerned. The flagship cryptocurrency continued its price declines into the new weekly session, hitting $32,105 ahead of the London opening bell following an approximately 10% intraday drop. In doing so, it raised the prospect of retesting its quarter-to-date low of $30,000 for either a bearish breakdown or a bullish pullback.

But as traders grapple with the ongoing medium-term bias conflict in the Bitcoin market, one classic technical pattern has surfaced to boost a bearish outlook. Spotted by Keith Wareing, an independent market analyst, the so-called “Inverse Cup and Handle” structure points to an extended downside price correction ahead in the Bitcoin market. In detail, the pattern develops when an asset forms a large crescent shape as it rallies higher and corrects lower, followed by a less extreme, upward rebound.

Traders look at the Inverse Cup and Handle pattern as their cue to open short positions to target deeper levels. The most extreme bearish target, in such a case, is determined by measuring the distance between the cup’s top and the pattern’s breakout level. Meanwhile, traders typically spot breakout levels when the price breaks out from the handle pattern to the downside while accompanied by higher volumes. Based on the chart provided by Wareing, Bitcoin’s recent price action — ranging from its pump to nearly $65,000 followed by a dump to $30,000 and a retracement to $40,000 — almost checks all the boxes that confirm the presence of an Inverse Cup and Handle structure.

The depressive Bitcoin setup appeared as traders assessed the United States Federal Reserve’s hawkish reversal on interest rates and inflation. Last week, the U.S. central bank signaled that it could raise benchmark lending rates by the end of 2023 instead of 2024 to tame the rising inflation.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 87.2% 21 $20 386.05 1.27% 4.08% $390 814 027 565 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 60.8% 78 $1 376.31 1.87% 2.52% $168 834 824 310 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.4% 1 $1.000149 -0.01% 0.01% $68 222 741 977 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 83.2% 21 $296.13 0.56% 3.97% $47 777 251 664 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 94% 1 $1.000099 0.02% 0% $46 439 045 522 USDC 7 days price change
6 XRP (XRP) XRP XRP predictions 60.4% 85 $0.503965 5.75% 13.60% $25 126 984 915 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 93.6% 1 $1.000404 0.05% 0.02% $21 050 734 011 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 76.8% 42 $0.435186 0.75% -0.57% $14 909 258 504 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 83.2% 21 $34.39 1.15% 1.69% $12 216 494 203 SOL 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 94.8% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Dogecoin (DOGE) DOGE Dogecoin predictions 84.4% 21 $0.065906 1.48% 8.37% $8 743 789 050 DOGE 7 days price change
12 Polygon (MATIC) MATIC Polygon predictions 70.8% 56 $0.850028 1.60% 13.44% $7 424 411 111 MATIC 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 73.2% 59 $6.50 1.24% 0.60% $7 298 763 043 DOT 7 days price change
14 Dai (DAI) DAI Dai predictions 93.6% 1 $0.999841 0.04% 0% $6 788 281 179 DAI 7 days price change
15 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 93.6% 5 $0.062712 0.65% 4.25% $6 376 303 888 WTRX 7 days price change

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