Bitcoin Could Quickly Rebound Back Above $30K as BTC Price Follows This Historic Trading Pattern
Bitcoin could be in for a quick rebound back above the $30,000 level in the coming days if it follows in the footsteps of a historic trading pattern that looks to be unfolding.
According to an article released by Bloomberg, after Bitcoin has jumped by at least 3% one day only to then give back the entirety of this gain the next day during a broadly bullish period for the cryptocurrency, it typically rebounds by around 7% within a three-to-10-day period.
For reference, Bitcoin jumped 3% on Tuesday, before dropping 5% on Wednesday, meaning it is in the early stages of trading in line with this historic pattern.
If Bitcoin was to see a quick 7% jump from Wednesday’s close near $28,800, it would be back to just below $31,000.
According to Bloomberg, the above pattern has played out 17 times during bullish market periods over the last five years.
Bullish market periods were defined as Bitcoin’s 14-Day Relative Strength Index being above 50 (it was above 50 on Wednesday, but fell just below 50 on Thursday).
While the above analysis from Bloomberg suggests that there might be some reason for optimism about an incoming Bitcoin price bounce, chart analysis is sending a more pessimistic signal, at least for the very near-term price outlook.
Bitcoin was last down just over 1.0% on Thursday and trading near $28,500, having now fallen below its 21-Day Moving Average (at $29,054) and an uptrend from the late-March lows.
From a technical perspective, that means the door is now open to a test of a downtrend linking late-March/early-April highs, which would come into play in the $28,000 area.
Was Bitcoin to fall below here, it would be odds to test support in the $26,500 area in the form of the 50DMA and a support-turned-resistance zone from
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