Will Bitcoin price crash again?
Bitcoin’s price rebounded by about 18.50% in a week after falling to a six-month low of around $49,755. However, the cryptocurrency could see further corrections in the coming weeks due to a mix of technical and on-chain indicators.
BTC’s ongoing correction cycle is accompanied by a decline in the percentage of long-term holders making profits, as measured by the 30-day moving average.
As of August 16, nearly 83% of these mature Bitcoin holders — those who have held the cryptocurrency for more than 155 days — were in profit. In March, the percentage of profitable long-term investors was around 96%.
BTC taking profits is often seen as a sign of FOMO, which often precedes or coincides with price corrections.
Due to this on-chain signal, Bitcoin’s price could see a pullback in the coming days if LTH decides to take profits.
However, in some cases, an ascending triangle could act as a continuation pattern within a downtrend. If the price fails to break through the resistance and instead breaks below the ascending trendline, the downtrend could resume. This suggests that sellers have regained control.
An ascending triangle is considered a bullish reversal pattern within a downtrend. Therefore, a decisive close of Bitcoin above its 50-4 hour MA could increase the probability of a rally to the triangle’s upper trendline, which aligns with its 200-4 hour MA (blue wave) at around $59,240.
Meanwhile, a successful close above the upper trendline could trigger an ascending triangle breakout scenario with an upside target of around $70,000.
