In mid-March, Bitcoin has seen intense volatility overnight. Following the cryptocurrency’s rejection at $12,000, its losses were somewhat limited. Moreover, the speed at which its price declined was shaking up. Nonetheless, an economist is saying that Gold shows Bitcoin could see further upside despite “blowoff top”.
As a result of this movement, bulls have been straining to build the lower-$11,000 regions as support. However, the absence of any firm reaction to this price region makes this level’s strength questionable.
A certain economist is now explaining that the “blowoff top” Bitcoin molded is dramatically similar to that experienced by both gold and silver last week.
Furthermore, the two precious metals were able to extend their uptrends quickly after posting these technical formations despite being bearish.
The economist thinks that Bitcoin will keep up with the two metals’ tracks.
Bitcoin faces immense volatility after experiencing rejection at $12,000
Overnight, Bitcoin bulls wailed as they sent the benchmark cryptocurrency up to highs of $12,000.
This movement turned out similar to the upswing experienced by Ethereum. It went up to $415 before dropping down as low as $300 on some trading platforms.
In a mere matter of minutes, the rejection Bitcoin experienced at $12,000 led it to $11,000. It marks as one of the fastest price declines seen since March 12.
Bulls have been trying to establish this price region as a level of support. However, they have not yet been able to have any notable reaction to this level.
As of the moment, Bitcoin is trading down over 5% with the current price, $11,180.
It is important to note that weekly candle close is fast approaching. Thus, it will likely see further volatility. Bulls and bears will battle for control over the digital asset’s short-term trend.
Bitcoin could see the further upside and may have room to extend if it follows silver and gold’s lead
Alex Krüger, a famous crypto-focused economist talked about Bitcoin’s rejection at $12,000. He said that this price action caused Bitcoin to form what is called a “blowoff top”.
He says that last week, both gold and silver showed similar technical formation despite the bearish sign. The resulting decline was quickly followed by an extension of their uptrends.
The economic backdrop which has an influence on Bitcoin has pulled gold up to fresh all-time highs. Therefore, there is a high chance that Bitcoin’s uptrend is anything but over.