The momentum in Bitcoin has completely dried out and for the past few weeks now, the Bitcoin price has done nothing but range! This ranging market has pushed a lot of crypto investors into Altcoins with coins like Ethereum and Dogecoin leading the way with massive gains in this mini Altseason.
But what those this lack of momentum mean for Bitcoin and should we be worried about a pending crash?
The Hidden Details!
Bitcoin has been finding it difficult to move up because two bearish patterns are currently developing on the 4-hour chart. These bearish patterns could spell doom for Bitcoin if they play out. We will be talking about these patterns in detail below.
- Bearish Wedge
It is important to note that the Bitcoin price has been bearish ever since the price broke through that wedge pattern on the 4-hour timeframe. However, the price is still yet to confirm our bearish bias for the sell trade.
We want to see the Bitcoin price sell-off and close below the $48,782 previous low. This would confirm that the Bitcoin price has officially entered a bearish trend and we can expect to see a crash back down to at least $41,335. But our main bearish target for this move is the $29,232 support. This would result in a massive 48% dump in the price of Bitcoin.
- Bearish Head and Should Pattern
The Bitcoin price is also forming a massive head and shoulder pattern at the current ATHs. This pattern also points to a likely sell-off in Bitcoin soon!
The key level we are watching for an entry trigger is the neckline. A price break below this neckline will confirm that the Bitcoin sell-off has started and we can expect to see a dump to the $29,232 support.
Bitcoin is in no man’s land right now! And while the price continues to trade above our entry line for both the Bearish wedge pattern and the Head and shoulder pattern we talked about in this analysis, we will remain neutral or slightly bullish on the Bitcoin price.
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