The Last Time Bitcoin Showed This Formation, It Dropped to $6,000

The bitcoin price rejected $9,500, a multi-year resistance it has been teasing with throughout the past two weeks. The last time it rejected at this level in a similar pattern, it dropped to the $6,000s.

Current fractal akin to 2018 price trend of bitcoin

In the first half of 2018, the bitcoin price struggled to recover following its correction from $11,500. It stayed within a range in between $6,500 and $9,500 for seven months, rejecting every attempt to break out of the $9,500 resistance level.

Bitcoin price trend in February 2020 eerily showing similarities as 2018

If the current price trend of bitcoin plays similarly as the 2018 fractal, it is likely to reject at $9,500 and result in the resumption of the bearish trend.

For that to happen, the weekly candle for February 3 to 9 would have to act as an evening star candle, and sell-off in the second week of February.

Conventional evening star pattern in technical analysis, which indicates a short-term top (source: DailyFX)

As explained…