Together Bitcoin After Wednesday’s rally once again failed to hold the key $28,000 support, bears took advantage to push the price below $27k. BTC is trading near $26,830 as the bulls look for a return to the $27k level.
The technical outlook for BTC suggests that if a head and shoulders pattern is confirmed on the daily chart, bulls risk conceding more ground to determined bears. In a tweet earlier today, Peter Brandt shared a chart of bitcoin price showing the H&S pattern on the daily time frame, as BTC struggles for upside momentum. He mentioned:
“If BTC is complete then head and shoulders should be taken seriously.”
What next for BTC if the price drops further?
In technical analysis, the head and shoulders pattern is taken to signal a trend reversal. In this case, a bullish-to-bearish reversal that signals that the coin’s uptrend is fading. Along with a local top, this trend reversal pattern historically signals further downside.
At that time, bitcoin was trading around $27,549, which puts the current price below the neckline of the pattern.
The downside could be much deeper, says crypto analyst Altcoin Sherpa, and shared a chart showing a possible return to the psychological support area at $20,000.
Advertisement
Invest in top cryptocurrencies quickly and easily with the world’s largest and most trusted broker, eToro,
10/10
81% of retail CFD accounts lose money