The largest digital token has demonstrated what is known as a "rising wedge," which technical analysts interpret as a sort of quiet before the storm — a brief lull in episodes of frequently significant downward pressure on an asset's price.
During the months of May and June, a rising wedge also appeared, stopping Bitcoin's earlier severe decline.
However, this rising wedge was quickly followed by a 42 percent decline that brought the virtual currency from above $30,000 to $17,600.
After falling by 57% this year due to tightening monetary policy, the collapse of leveraged crypto companies, and a gloomy sentiment in the global markets, opinions are divided on whether the cryptocurrency has found a floor around $20,000.
In the most recent MLIV Pulse survey, most participants said that the token is more likely to fall to $10,000 than to reach $30,000.
As of Tuesday at 12:10 p.m. in Singapore, it dropped around 2.4 percent to hit $19,927.
Senior market analyst at Oanda Craig Erlam stated in a note: “Not only is the broader market environment not in its favour, even if the occasional bear-market rally inspires some hope, but the crypto community isn’t exactly buzzing either.”