Head-and-shoulders Bitcoin Pattern Could Need a Strong Support
The price of bitcoin has been reading between $6,500 to $6,900 over the last three days. However, there have been several failed attempts for bitcoin pattern to move above $6,900 since then. This attempt has produced a short temporary bearish bitcoin pattern over the last few days as we have seen.
Bitcoin pattern climbing above the support line
There has been a particular support line for Bitcoin price to climb since the 13th of March. This is the fourth time that the price of bitcoin has been trying to move above this support line at the time of writing this article. Throughout this movement, the price of bitcoin has climbed to $6,900 three times, although there have been reduced RSI-highs each of this time. The amount that precedes this decreases, and it is called bearish deviation in trading. Lastly, the bitcoin price is yet to breakdown this bearish deviation trend-line. Also, they have characterized the values of candlestick that are found near $6,900 with extended upper wicks, and a bearish sign follows this. This sign supports the further downside movements of the bitcoin pattern. However, the breaking down of the price makes the value around the nearby support area to be within $5,700.
Within a very short time, there has been a rough and uneven head and shoulders movement in the bitcoin price. With the right pattern, the pricing process will create the perfect shoulder. On the other hand, the neckline of this bitcoin pattern is set to be at $6,550. This bitcoin pattern is bearish, and it shows that there is a high possibility in the price of bitcoin breaking down further soon.
The long-term outlook of bitcoin pattern
With the weekly view of this bitcoin pattern, it has been shown that the price core resistance level is yet to move above $6,900. Also, as a trading analyst, looking at the current bitcoin chat candlestick over the last two weeks in relation to the earlier bearish ones once can deduce that there will be a retracement prior to the new upward movement. Except there is a weekly rise in the bitcoin pattern beyond $6,900 level, the directional preference will remain bearish.
Above all, there have been several failed attempts by the BTC to move beyond the resistance level of about $6,900. This situation has produced a short-term bitcoin bearish pattern. This, on the other hand, has shown that the price of bitcoin will soon fall below $5,700.
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