The crypto market is finally seeing some green during today’s trading session, with the Bitcoin price rising above $27,000 for the first time since late August. Similar to that occasion, the cryptocurrency stands at a crossroads, but bulls should remain cautious, new data suggests.
As of this writing, the Bitcoin price trades at $27,200 with a 3% profit in the last 24 hours. Over the previous week, the cryptocurrency experienced a 9% gain, with the rest of the top 10 by market cap displaying similar price action but lagging BTC.
This technical indicator predicts downside pressure for the Bitcoin price. However, the spike in selling pressure seen in the chart may take some time to gain strength.
If the Bitcoin fractal above holds accurate, and if the cryptocurrency completes the double top, there is a high chance of a brief relief rally. In this scenario, the price of BTC could continue on its current trajectory and hit the $28,500 to $29,000 levels before declining into critical support.
The fractal could be invalidated if bulls can push the price of Bitcoin above $31,000 and into yearly highs, Rekt Capital believes. Other bullish scenarios in the long term involved a weekly close above the resistance created at around $29,000 and for $19,000 to hold as support in case of further downside.
Additional data from crypto analytics firm TheKingFisher indicates that the current Bitcoin price rally could lose steam. As the chart below shows, upside liquidity for the current price action is limited.
On the contrary, big liquidity pools are sitting on the downside, waiting for big BTC traders to push prices into those levels. In the short term, $26,700 is a potential critical support in a spike in selling pressure.
Cover image from Unsplash, chart from Tradingview
