In the last couple of days, the rapid rise of Bitcoin, brought significant profits to the BTC investors. The leading cryptocurrency has gained more than $ 2,500 over the past seven days, and all crypto traders are asking one question – when this unexpected rally will end? As of 19:30 UTC, May 14, important signals are emerging, which suggest that Bitcoin has topped out and is entering the major reversal, as expected by many traders.
On Tuesday, Bitcoin’s price has dropped sharply from $8,326 to $7,710 on the Coinbase exchange. The fall continues at the time of writing. A similar reversal pattern is emerging on all major exchanges, including Bitfinex, Bitstamp and Binance.
As reported earlier this week, the most recent Bitcoin’s price rally could be directly correlated with the Binance hack and Tether scandal. On Tuesday, Binance has confirmed, that it will perform a major system upgrade on May 15, 3:00 AM UTC, and the upgrade will approximately take 6-8 hours. Once the upgrade is completed, it’s most likely that investors will be able to withdraw their funds again. This could be one of the main reasons why Bitcoin’s price is starting to fall.
Fibonacci retracement levels suggest that BTC/USD price could rebounce at $7,350, $6,750 and the main, 0.5 Fib retracement zone of $6,250, from which the downtrend should reverse and Bitcoin’s price should start to climb up again. However, if BTC will break the $6,000 price point and the downtrend will continue, leading cryptocurrency could fall as low as $5,200-$5,000, to the previous support levels.
$BTC 1W TF-
Disrespectfully smashed through resistance level after resistance level, something not many really saw coming (proper max pain scenario) now do we top here~ $8500 or does Bitcoin rally as far as 10k?
The bear market is over, this is my new bull market layout. 🐂 pic.twitter.com/o4Ig3z0skm
— ESCO₿AR (@TraderEscobar) May 14, 2019
However, some investors are proposing alternative ideas. According to one of the top traders on Tradingview, D4rkEnergY, Bitcoin’s price could reach as high as $10,000 before the major retracement.
“We are at 8,000 USD with huge liquidity (and liquidity pools, which makes it perfect for whales to stop hunt in either directions). So far we have only been destroying Shorts, but now we have a perfect opportunity to kill Longs too,” says the trader.
Regardless of what the long term future holds, the fact that Binance is about to re-open withdrawals, turmoil is ahead for crypto investors. And as the most recent BTC/USD price movement suggests, BTC will continue to fall until investors will have more clarity on how the Binance withdrawals situation will pan out.