Ismeidy
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The "head and shoulders" pattern of #bitcoin points to a liquidation down to $75,000
The latest price drop of #BTC☀ could be setting the stage for a significant bearish reversal pattern.
The price action of BTC since late November has evolved into what technical analysts call a "head and shoulders" (H&S) pattern, which foreshadows a trend change from bullish to bearish. The first failed attempt to scale the $100,000 mark in November marked the first shoulder.
Next, the head drop occurred, marking a rapid pullback to $92,000 from the all-time high of over $108,000 in the second half of December. Meanwhile, the 5% drop to nearly $97,000 hints at the formation of a right shoulder.
If the selling pressure persists and prices fall below the neckline (the horizontal trendline connecting the valleys of the two shoulders), the head and shoulders bearish reversal pattern would be confirmed. At the time of writing this article, based on the technical analysis of Omkar Godbole, a master's in Finance and member of the Chartered Market Technician (CMT), the so-called neckline support was seen around $91,500.
A break below this level could pave the way for a drop to approximately $75,000, a figure determined using the measured move method. The method measures the vertical distance from the highest point of the head to the neckline and then subtracts the same from the price point of the neckline to arrive at a possible drop target.
In technical analysis, traders examine charts for price patterns to predict future movements. However, it is necessary to act cautiously when trading such patterns, as they may fail and leave traders on the wrong side of the market.
#btc70k #BinanceSquareFamily $BTC
The latest price drop of #BTC☀ could be setting the stage for a significant bearish reversal pattern.
The price action of BTC since late November has evolved into what technical analysts call a "head and shoulders" (H&S) pattern, which foreshadows a trend change from bullish to bearish. The first failed attempt to scale the $100,000 mark in November marked the first shoulder.
Next, the head drop occurred, marking a rapid pullback to $92,000 from the all-time high of over $108,000 in the second half of December. Meanwhile, the 5% drop to nearly $97,000 hints at the formation of a right shoulder.
If the selling pressure persists and prices fall below the neckline (the horizontal trendline connecting the valleys of the two shoulders), the head and shoulders bearish reversal pattern would be confirmed. At the time of writing this article, based on the technical analysis of Omkar Godbole, a master's in Finance and member of the Chartered Market Technician (CMT), the so-called neckline support was seen around $91,500.
A break below this level could pave the way for a drop to approximately $75,000, a figure determined using the measured move method. The method measures the vertical distance from the highest point of the head to the neckline and then subtracts the same from the price point of the neckline to arrive at a possible drop target.
In technical analysis, traders examine charts for price patterns to predict future movements. However, it is necessary to act cautiously when trading such patterns, as they may fail and leave traders on the wrong side of the market.
#btc70k #BinanceSquareFamily $BTC
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