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The Bitcoin price is currently forming a massive Head and Shoulder pattern on the Daily timeframe. If this prediction plays out, we can expect to see more bearish days for Bitcoin. Continue reading to find out the key levels to watch!
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Bitcoin Still Bearish On The Daily Timeframe
In our last Bitcoin analysis, we warned our readers that Bitcoin was only slightly bullish and we might face a steep resistance at the $42,125 key levels in the coming days.
As of the time of writing this article, Bitcoin is still trading around that key resistance unable to breakthrough. That ranging market is completing the massive head and shoulder pattern we are seeing play out on the Bitcoin Daily timeframe.
Watch This Key Level
The most important level to keep an eye on in the coming days is the Neckline of the Head and Shoulder pattern. A price break and a close below this neckline complete the pattern and point to a massive sell-off soon for Bitcoin.
This makes it very important for the Bitcoin bulls to hold this key level. A break below it could end the hope for a resumption of the bullish trend for the short term.
But for this bearish scenario to play out, the Bitcoin price needs to close below the neckline.
Bearish Targets!
A break below this Neckline support could see Bitcoin selling off back down to the $20k level in the coming days. This level was previous support for Bitcoin and might serve as a strong base for the bulls to fight back and stop Bitcoin from selling off any further.
This price scenario is very tradeable. But it is important you wait for the price to break below the neckline to confirm our bearish bias.
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Easy Steps From Beginner To Pro Crypto Trader
You can speed up your learning journey by reading our How To Trade Bitcoin Guide. This guide is the best for crypto traders who wants to get familiar with the basics of Bitcoin trading. You can also check out our top list of Best Bitcoin Exchanges To Trade With.
