Over the last few hours, Bitcoin price (BTC) swiftly dropped 3% from $8,863 to $8,557 and for the third time in 24 hours bulls were forced to defend the $8,600 support level, which has currently been bought into on each dip.
The pullback came after the digital asset struggled to rise above $9,000, twice testing $8,863 over the past day, which could be interpreted as a take profit signal for traders.
At the time of publishing, the price remains above the descending channel trendline at $8,300 and the 200-day moving average, which is located at $8,173. The 200-DMA is also slightly above the 38.2% Fibonacci retracement level at $8,093 and the pattern of higher lows remains intact.
On Jan. 15, Cointelegraph contributor Michaël van de Poppe tweeted that a pullback to $8,400 would be healthy.
If such a move were to occur over the next 24 hours, the price would bounce off the ascending trendline and 23.6% Fibonacci retracement to have another go at $9,000. Failure to hold above $8,300 would see Bitcoin retest the soft support at the 200-DMA and below this traders will look for a golden pocket bounce off the 50-DMA and 61.8 Fibonacci retracement level at $7,775.
Some traders have noticed that an M-Top can be seen on the 4 and 6-hour time frame and cautioned that this is an ominous sign. Similar patterns developed after Bitcoin’s June 2018 rally to $13,800 and also after the digital asset reached an all-time high in December 2017.
https://cointelegraph.com/news/bitcoin-price-rally-to-9k-in-danger-as-a-double-top-pattern-appears
