Bitcoin Bearish Head & Shoulder Chart Analysis

13 thg 5, 2023

Bitcoin Technical Analysis: Head & Shoulder Pattern Indicates Bearish Trend

Bitcoin's current trading price is $26800, and the daily time frame chart shows that the Neck Line support of the Head & Shoulder pattern has been broken, indicating a bearish trend. This article provides a technical analysis of the BTC/USDT chart, along with insights into the potential target and key levels to watch.

Previous Analysis -

Correct Prediction: The author's previous analysis of Bitcoin's trading behavior correctly predicted a drop from 30k to 26k.

Fresh Analysis -

Head & Shoulder Pattern Indicates Bearish Trend: The daily time frame chart indicates that the Neck Line support of the Head & Shoulder pattern has been broken, signaling a bearish trend. The Head & Shoulder pattern is forming perfectly, and the current target after breaking the Neck Line support is $24000.

$24000 Target -

Based on Chart Analysis: The target of $24000 is based on the height of the Head from the Neck Line support on the chart.

Retest Level at $24000:

After the breakout on 13-14 March, Bitcoin reached $31000 from $24000. However, the chart pattern has not yet retested the breakout point, so the current retest level is at $24000. Therefore, traders should give high priority to testing $24000 before an upside ride.

What if Head & Shoulder Pattern Fails?

It is possible that the Head & Shoulder pattern may fail. In that case, if Bitcoin breaks upward $27000 and daily candle closes above $27500, the current pattern will be invalidated, and the targets will be on the upward side.

Key Levels by CryptoPatel:

The author suggests that traders should watch the support levels of $24000 and $21300 and the resistance level of $27050.

Takeaways for Traders:

Based on the technical analysis of the BTC/USDT chart, the author predicts a bearish trend with a potential target of $24000. Traders should keep an eye on the chart and be prepared for any unexpected market movements.

Conclusion:

Bitcoin's current Head & Shoulder pattern indicates a bearish trend, with a target of $24000 after breaking the Neck Line support. The author advises traders to be cautious and monitor the chart closely to make informed trading decisions.

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