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In our previous Bitcoin analysis Has The Bitcoin Sell-Off Started? Watch This Level, we made a prediction that Bitcoin had a very high probability to sell-off back down to the $29,219 support soon.
Well, as at the time of publishing this analysis, the Bitcoin price has sold off more than 7% but is currently retracing some of those losses.
In this Bitcoin analysis, we will be talking about the Head and Shoulder pattern currently forming on the Bitcoin charts.
Related Article: Full Guide On How To Short Bitcoin
Head and Shoulder Pattern Points To More Sell!
Going one timeframe lower to the 30 min charts, we can clearly see this currency move in price creates a head and shoulder pattern scenario with the neckline at the $32,456 horizontal resistance!
If you don’t know what a Head and Shoulder pattern is, it is a high-quality bearish pattern that provides us with the best opportunity to catch the Bitcoin trend once it sells off.
Key Levels To Watch
The most important level to watch is the neckline. A price break and close below this neckline serve as our bearish confirmation and point to more price sell-off for Bitcoin in the coming days.
However, if Bitcoin continues trending higher and breaks through the $34,443 resistance level, this bearish price prediction in Bitcoin becomes invalid.
Final Verdict!
We will remain bearish on Bitcoin as far as the price continues trading below the previous highs at $34,443. A break above this resistance region invalidates our bearish bias on Bitcoin.
We can also expect to see a massive price dump to the downside once Bitcoin breaks through $32,456 horizontal resistance which also serves as the neckline for the head and shoulder pattern currently playing out on the 30 min timeframe
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