Why traders are making a strong case for Bitcoin at $7,700 as volume and momentum weaken

The Bitcoin price is pulling back after testing the $10,000 level three times in the past week. As the price trend of BTC eerily reflects its movement in October 2019, traders are anticipating a steep pullback.

How bitcoin failed to rise above important resistance

Throughout the past three weeks, the bitcoin price attempted to break out of a crucial resistance level at $10,500, which it rejected in October of last year.

Four months ago, after the bitcoin price abruptly surged from the $8,000s to $10,600 within less than 24 hours, it immediately rejected the $10,500 to $10,600 range, ultimately leading to a multi-month correction to the $6,000s.

At higher time frames, bitcoin is hovering under two key resistance levels at $10,500 and $9,800.

Traders are anticipating $10,500 to have been the local top and expect the dominant cryptocurrency to consolidate after a near 50 percent rally.

In previous bull cycles, bitcoin saw large pullbacks following rallies of around 40 to 50 percent.