{"id":264948,"date":"2021-06-02T20:00:00","date_gmt":"2021-06-02T17:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/classic-technical-indicator-foresees-another-massive-bitcoin-price-drop-with-16k-target\/"},"modified":"2021-06-02T20:00:00","modified_gmt":"2021-06-02T17:00:00","slug":"classic-technical-indicator-foresees-another-massive-bitcoin-price-drop-with-16k-target","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/classic-technical-indicator-foresees-another-massive-bitcoin-price-drop-with-16k-target\/","title":{"rendered":"# Classic technical indicator foresees another massive Bitcoin price drop with $16K target \u00a0"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2675cfe30f2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2675cfe30f2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/classic-technical-indicator-foresees-another-massive-bitcoin-price-drop-with-16k-target\/#Bitcoin_price_in_a_%E2%80%98Bearish_Pennant\" >Bitcoin price in a &#8216;Bearish Pennant&#8217;\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/classic-technical-indicator-foresees-another-massive-bitcoin-price-drop-with-16k-target\/#Bullish_outlook\" >Bullish outlook<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Classic technical indicator foresees another massive Bitcoin price drop with $16K target \u00a0 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) has rebounded by more than 25% after bottoming out at $30,000 during the May 19 crash. But the cryptocurrency continues to tread ahead under the possibility of facing another period of strong sell-offs owing to a classic technical indicator pattern.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_price_in_a_%E2%80%98Bearish_Pennant\"><\/span>Bitcoin price in a &#8216;Bearish Pennant&#8217;\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Dubbed as <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.babypips.com\/learn\/forex\/pennants\">Bearish Pennant<\/a>, the pattern forms when an asset consolidates after a strong move downward and forms a small symmetrical triangle-like price range. It breaks below the range support and continues moving lower. Traders usually\u00a0estimate the size of the negative breakout move by measuring the\u00a0height of the earlier move.<\/p>\n<p>Bitcoin is currently trading inside a similar bearish pennant structure, fluctuating sideways as it forms a sequence of lower highs and higher lows. Meanwhile, its consolidation structure precedes a massive move downhill to around $20,000. Therefore, if the BTC\/USD rate breaks below the pennant structure, accompanied by rising trade volumes, its likelihood of crashing by almost $20,000 is high.<\/p>\n<p>The bearish outlook also borrows cues from Bitcoin&#8217;s recent bounce. It is worthy to take notice that the cost to purchase one Bitcoin fell from almost $65,000 to $30,000 on May 19 \u2014 or by over 50% \u2014followed by a considerable 30% bounce.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/95669959-8d3e-4a8b-93fd-75209557eb83.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin pennant structure and its primary downside target. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Meanwhile, market analytics service Income Machine is warning of a &#8220;dead cat bounce&#8221; scenario emerging in the Bitcoin market, noting that upcoming rallies in BTC\/USD could face limitations by further selling pressure near the May 26 highs (the $39,000-$41,000 area). It recommended traders exit their bullish positions near $40,000.<\/p>\n<p>What&#8217;s more, Income Machine also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/seekingalpha.com\/article\/4432377-bitcoin-btc-dead-cat-bounce\">noted<\/a> that a failure to hold $30,000 as support would risk crashing bitcoin prices to $16,200 \u2014 a level that coincides with the Bearish Pennant target. The analytics firm selected $16,200 because of its historical relevance as support during the November-December 2020 session.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/09f8b6ef-0b20-4537-aad6-5b12ba08b1c5.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin bearish outlook presented by Income Machine. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>&#8220;Conversely, an upside break of the May 26 highs would cause us to reverse our analysis and adopt a more bullish outlook for BTC-USD,&#8221; added Income Machine analysts.<\/p>\n<p>Pankaj Balani, chief executive and co-founder of crypto derivatives exchange Delta, also anticipated an extended bearish breakdown should the bitcoin price closes below $34,000. Nevertheless, the former UBS alumni limited his downside target to $28,000, 2021&#8217;s lowest level. He told Cointelegraph:<\/p>\n<blockquote><p>&#8220;Traders would be keenly watching these levels before taking any decisive action. That said, the risk to the Bulls remains higher compared to that of Bears, as longer-term price action is in a downward direction.&#8221;<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Bullish_outlook\"><\/span>Bullish outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Balani also noted that the current price action signifies demand in the $30,000-$35,000 range. Therefore, an upward swing from the said area could end up breaking the Bearish Pennant \u2014 which Balani referred to as Symmetrical Triangle \u2014 to the upside.<\/p>\n<p>&#8220;BTC is forming a classic symmetric triangle and any breakout\/breakdown will lead to a significant price move,&#8221; he said, adding:<\/p>\n<blockquote><p>&#8220;If BTC breaks out of $40K conclusively, a move to $45K can be expected.&#8221;<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/classic-technical-indicator-foresees-another-massive-bitcoin-price-drop-with-16k-target\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Classic technical indicator foresees another massive Bitcoin price drop with $16K target \u00a0 &#8221; Bitcoin (BTC) has rebounded by more than 25% after bottoming out at $30,000 during the May 19 crash. But the cryptocurrency continues to tread ahead under the possibility of facing another period of strong sell-offs owing to a classic technical&#8230;<\/p>\n","protected":false},"author":1,"featured_media":264949,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvZDViODc4Y2ItNzc4MS00Yzg5LTlmZDMtNjk1ODE3ZjJkY2Q4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74937,74939,78261,73785],"class_list":["post-264948","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-market-analysis","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/264948","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=264948"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/264948\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/264949"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=264948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=264948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=264948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}