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Bitcoin Bulls Risk Losing Uptrend Line From Sub-$20K

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Bitcoin price is back under $57,000 after losing an important trend line that has supported the cryptocurrency’s now historic uptrend. The critical uptrend line began just after the leading cryptocurrency by market cap cracked back above $20,000 for the first time, and it never looked back since.

Losing such a line, however, could lead to the first extended return to prices previously traded at, requiring a stronger bounce before the Bitcoin bull run resumes.

Bitcoin Uptrend Line Built Under Sub-$20K Now At Risk

Resistance above $60,000 has proven once again too strong for bulls to break, and bears are now pushing the price per coin back down to retest support lower. Thus far, Bitcoin has held strong and the uptrend has been unaffected since far below $20,000.

RELATED READING | BITCOIN MINERS DUMPING HALF A MILLION BTC COULDN’T DENT BULL RALLY

The full bull run began at prices much lower dating back more than one year ago. The leading cryptocurrency by market cap had a historic climb from below $4,000 on Black Thursday in March 2020 to more than $60,000 per coin this past month.

However, the latest selloff has pierced through a trendline that’s supported the powerful uptrend since long below $20K. It now all comes to what will be a crucial daily candle close at around 8PM ET tonight. Volatility today leading into the close could pick up as bulls attempt to push back above the trendline, while bears aim to ensure a confirmation of more downside ahead.

bitcoin bull trend line 2021

The uptrend line supporting Bitcoin from under $20,000 to more than $50,000 has been pierced | Source: BTCUSD on TradingView.com

Why The Monthly Green Streak In Crypto Could Soon Turn Red

Despite the risk of losing the uptrend line, that doesn’t necessarily mean a downtrend will begin, or that the greater bull market is immediately over. Bitcoin price was following a sharper uptrend line at one point, and although that was also lost, no dramatic downside has ever materialized. In fact, losing the last trendline resulted in a bull trap.

The price action has also sent Bitcoin back to retest now strong resistance above $60,000 – the current local peak – where it was rejected yet again. The rejection sent Bitcoin price tumbling and has poked through the another steep uptrend line.

RELATED READING | DATA: BITCOIN BULL RUN MAY BE LESS THAN ONE-QUARTER COMPLETE

Bitcoin price has had several stronger corrections on daily timeframes. On weekly timeframes, there have been a handful of corrections, but have been weak compared to past bull runs. Monthly timeframes, however, have been nothing but green for the longest streak historically, which could indicate the first much larger correction in Bitcoin on the largest of timeframes.

And it all could be beginning with a daily close below this clearly important trendline, which has supported the entire uptrend in 2021 thus far. Regardless of any short-term correction, however, the bull market shouldn’t be finished. Data suggests that the currency cycles is only roughly one-quarter complete.

Featured image from Deposit Photos, Charts from TradingView.com



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Turkish crypto exchange halts trading amid reports of police raid

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Major Turkish cryptocurrency exchange Thodex has abruptly halted trading and withdrawals amid reports of police raids, Cointelegraph Turkey reported on Thursday.

Thodex posted an official announcement on Twitter on Thursday, informing users that it has halted transactions for a period of four to five days. According to a statement, the platform stopped trading and withdrawals due to a purported partnership with “world-renowned banks and funding companies” to improve its services.

Thodex said that its clients should not be worried about their investments, stating that “users will be informed regularly” during the suspension period. The exchange had previously announced a six-hour-long maintenance break on Tuesday.

The abrupt suspension of trading and withdrawals has concerned the crypto community, as the exchange has gone radio silent since announcing the interruption.

Local publications speculated that the suspension could be part of an exit scam amid reports that the company’s founder, Faruk Fatih Özer, has fled to Thailand with $2 billion worth of crypto. The founder allegedly left Istanbul Airport on Tuesday, while local authorities have launched a criminal investigation against the firm and raided Thodex’s offices.

Thodex did not respond to Cointelegraph’s requests for comment.

The news comes amid a new wave of concern over the Turkish government’s stance on cryptocurrency regulation. The country’s central bank officially announced a ban on crypto payments effective as of April 30. 

Additional reporting by Erhan Kahraman and Ayse Karaman.