Bitcoin price ever since marked its new ATH close to $70,000 is experiencing quite a tough phase with very little volatility. The profits flow into other altcoins while the volume on Bitcoin is reduced comparatively. And hence, the BTC price was compelled to swing within a very narrow range between $48,000 to $52,000. While most of them believed the current consolidation may aid for the upward price movement, the Bitcoin bulls had their own plans.
The BTC price has yet again formed a similar pattern as before and hence could range high as soon as the asset breaks from it. The long-term chart shows the price has formed a ‘Head & Shoulder’ pattern which may drag the price to the lower levels soon.
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Bitcoin price is said to be testing the neckline of the head and shoulder pattern, yet there are 3 main reasons, why this cannot be a complete H & S pattern!
- The neckline is elevated rather than being on a straight line
- The head & shoulder pattern appears to be more congested rather than forming a clear mountain
- Both the shoulders and head do not share the same neckline zone
Nevertheless, the BTC price may not be trending within the H & S pattern, yet the fear of a notable plunge still haunts the rally. Currently, the asset is keeping no stones unturned in holding the $43,000 levels. Therefore, if the price flips from here, the rally may get an interim relief from the bears. Yet bearish trends may still prevail as Coinpedia covered earlier that the Bitcoin Death Cross is on its way, a drastic decline may be imminent.
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The lower support levels from here are pretty strong and hence if held, a rebound could be possible. But if the asset breaks down these levels, then it may continue to visit lower support levels without even attempting for a flip. Yet the most important support levels lie just below $30,000, somewhere around $28,000. And if the BTC price breaks through these levels, then the market may become standstill for some time before planning the next phase of the rally.
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