Bitcoin shows a sharp drop after a long time; what will happen to the price going forward? — October 12 Chart Analysis
Bitcoin (BTC), which has long been in a range-bound market, was forming a pennant pattern within that range. As a result, at the convergence point of the pennant pattern, Bitcoin took the shape of breaking the upper rising trend line that forms the lower edge of the pennant pattern. After a brief decline, Bitcoin attempted to recover, but selling pressure remained strong, leading to a further larger drop on October 11. We will review Bitcoin’s chart.
Bitcoin (BTC) shows a temporary decline at the pennant pattern convergence point, with a limited rebound and further sharp decline
After that, BTC continued to fall, and on October 10 it significantly penetrated the rising trend line. At this point, the price fell to the 720,000 yen range, marking the lowest price within the range since September 29 and reaching a key settlement point.
BTC, having hit its lowest, staged a rebound, but the move failed to reach even the portion of the previously broken descending trend line, returning to the 720,000 yen range, and BTC then accelerated into a further sharp decline.
As of October 12 today, BTC’s bottom has fallen to the 680,000 yen range. Although BTC briefly rebounded after dipping to the 680,000 yen range, that rise was limited, and it has already shown a second bottom contact.
Looking at BTC’s order ratio, the rapid decline today has wiped out the accumulated buy orders for BTC in one move. In contrast, sell orders appear to be accumulating further.
※ The continuation of the professional trader’s commentary is available here
