Bitcoin price is creating a short-term bearish pattern (H&S) with high breakdown potential

Over the past three days, the Bitcoin price has been trading in the range of $ 6,500 - $ 6,900 and has made some unsuccessful attempts to rise above $ 6900. It may have created a short-term bearish pattern.

Bitcoin's ascending support line

Bitcoin price has been following an ascending support line since March 13. At the time of writing, it was very close to confirming this support for the fourth time.

During this ascending support trail, the price reached a high of nearly $ 6,900 three times. However, the RSI highs are smaller each time. This is called a bearish divergence and usually precedes the discount. Finally, the trend line of the bearish divergence has not broken yet.

In addition, candle values ​​near $ 6,900 were shown by the long upper wicks, a bearish sign that supports subsequent price movements on the downside.

If the price breaks down, the nearest support area is found around $ 5,700.

Bitcoin shoulder role 2

In short, the price has created a rough outline of the head and shoulders pattern. If this pattern is valid, the price is in the process of creating the right shoulder, while the neckline of the pattern is found at $ 6,550.

This is also a bearish pattern that confirms the belief that prices are likely to breakdown.

Bitcoin shoulder role 3

Long-term prospects

Looking at the weekly time frame shows that the main resistance level that the price has yet to overcome is $ 6900. Also, just by looking at the size of the current two weekly candles compared to the previous price drops, We can see that a pullback is very likely to occur before starting a new up move.

Until the price can reach weekly closing levels above $ 6,900, the trend is still down.

In summary, BTC price made some unsuccessful attempts at breaking out of the $ 6,900 resistance. It has created a short-term bearish pattern and it looks like the price will breakout.

You can see the price of Bitcoin here.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.


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