• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
btcusd, btcusdt, crypto, cryptocurrency, xbtusd, bitcoin
Nexo Logo

57% Chance of Bitcoin Price Falling Drastically, According to This Indicator

Yashu Gola by Yashu Gola
2 years ago
in Bitcoin, Technical analysis
Reading Time: 2 mins read
Advertisement
  • There is a 57 percent chance of Bitcoin undergoing a bearish breakout, according to a standalone indicator.
  • The warning pops at a time when the cryptocurrency is testing a 2.5-year-old trendline as its primary resistance.
  • If valid, then the bitcoin price can fall towards $7,700.

Bitcoin has confirmed the presence of a standalone technical indicator that could send its price down to $7,700.

Dubbed as Diamond Top, the fractal pattern appears when an asset forms “higher peaks and lowers valleys,” eventually trapping the price action in a diamond-shaped area. Discovered first by prominent technical analyst Tom Bulkowski, the indicator is slightly bearish, for its occurrence leads the assets to fall 57 percent of the time.

btcusd, btcusdt, crypto, cryptocurrency, xbtusd, bitcoin
BTCUSD in a Diamonds Top pattern | Source: TradingView.com, BitStamp

A textbook description of the Diamond Top article highlights successive formations of these characteristics: Uptrend, Shaping, Higher Peaks Lower Valleys, Touches, and Breakout.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Pitting them against Bitcoin’s current price movements paints a similar scenario.

The cryptocurrency was trending upwards (point A to B); it formed the diamond shape (B to C), it touched each trendline at least twice and is now looking to undergo a breakout. 57 percent chance that the next move is to the downside.

Another Resistance

The Diamond Top breakout point is at C, as shown in the chart above. The juncture coincides with a 2.5-year-old Descending Trendline resistance that has capped Bitcoin from extending its upside moves. The cryptocurrency’s seven latest pullbacks occurred owing to the same price ceiling.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!
btcusd, btcusdt, crypto, cryptocurrency, xbtusd, bitcoin
BTCUSD test long-term Descending Trendline as resistance | Source: TradingView.com, BitStamp

The Descending Trendline resistance theoretically validates the breakout that could appear out of the Diamond Top pattern. The selling pressure near the confluence would be higher, leading to price falling back to retest its 200-day moving average (orange).

Coincidentally, the support wave also falls near the Diamond Top’s breakout target.

Bitcoin Price Target

Bulkowski states that “the crash site (downtrend end)” following the Diamond Top breakout is “often near the price level of the launch site (uptrend start).”

diamond top, btcusd, btcusdt, crypto, cryptocurrency, xbtusd, bitcoin
Diamond Top example | Source: The Pattern Site

That said, bitcoin risks falling back towards point A after its breakout. The said downside target is slightly above $7,700 – the same level offered support to Bitcoin’s downtrends in September 2019, October 2019, January 2020, and March 2020.

Meanwhile, there is still a 43 percent chance of Bitcoin rejecting bears. Should that happen, the cryptocurrency would rise by as much as the height of the Diamond Top. That puts its upside breakout target near $11,800.

Photo by Joanna Nix on Unsplash
Tags: bitcoinbtcusdBTCUSDTcryptocryptocurrencyxbtusd
Tweet123Share220ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Related Posts

Ethereum

TA: Ethereum Close Below $1K Could Spark Larger Degree Downtrend

4 hours ago
Bitcoin

TA: Bitcoin Remains In Downtrend, What Could Spark Sharp Upside

6 hours ago
Cardano

Cardano (ADA) Looks To Recover After Sliding To $0.43 – Pressure’s On For The Bulls

20 hours ago
Bitcoin

Can This Bitcoin Ratio Have Hints For A Bottom?

2 days ago
bitcoin

Why Bitcoin Could Return To $28,000, But By The End Of 2022

2 days ago
$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

3 days ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
BC.Game

BC.Game

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
BC.Game

BC.Game

Review · Visit

Web3 Delight Lagos – Breaking barriers to pave the way for the digital future

July 4, 2022

LBank Exchange Will List DOTORI (DTR) on July 4, 2022

July 4, 2022

WorldPF (WDPF) Is Now Available for Trading on LBank Exchange

July 4, 2022

MetaBitcoin (MBTC) attracts investment from Dubai’s first royal crypto fund, Alawad Fund

July 4, 2022

MicroNFT (MNT) Is Now Available for Trading on LBank Exchange

July 4, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.