Chart pattern shows: Bitcoin could drop to $12,000 before it rises again

Bitcoin and the whole crypto market are showing some signs of strength on this relatively calm morning for the markets.
After a brief trading surge below $17,000, the benchmark crypto currency has firmly regained this price region.
It is now trying to rise higher as the bears lose strength, which could be a sign that its recent lows of $16,400 are a long-term low.
In the medium term, market trends depend entirely on Bitcoin – and on whether or not it can stabilise.
One trader is now pointing to a pattern whereby BTC could soon see a sharp decline, with the coin falling to $12,000 before recovering.

Bitcoin and the rest of the crypto market are currently in a consolidation phase following the recent market-wide decline.

This moderate trading favours bulls, as BTC and most of the old coins have climbed higher during the last day.

Where the overall market trend will move to next depends on whether Bitcoin can confirm $17,000 as a long-term support level or not.

However, a trader is now pondering a potential scenario in which BTC drops to $12,000 before finding enough support to overcome the resistance that exists around its all-time highs.

Bitcoin gains momentum after recent sell-off
Bitcoin is now trading nearly $1,000 above its multi-day lows, with the recent drop to $16,400 clearly a reflex response to the culmination of several factors that are seen as potentially declining.

BTC is currently trading at $18,120. This represents a remarkable decline from the recent highs of $19,500.

Rejection at these highs, coupled with fears of a new wave of regulation, caused the price to fall – but now these fears seem to be subsiding.

Trader indicates: Bitcoin could plummet to $12,000 immediately
One trader now tweets that Bitcoin could be on the verge of falling towards $12,000 before it can find enough support to climb back up to its all-time highs in the upper $19,000 region. He writes with reference to the chart below:

„Three pointers: – this is just one scenario, one of many that describes the most brutal correction I can imagine – probabilities? I don’t know, many other scenarios to consider, too early to mention – don’t bet downwards on this, it seems that many people want this.“.

Picture courtesy of Bitcoin Jack. Source: Bitcoin Jack: BTCUSD on TradingView.
The coming days should give an indication of where the whole market will go next. A sustained increase in trading above $17,000 could see Bitcoin rise back to its all-time highs.