Bitcoin down: As Bitcoin continues to cling to life support, signs emerge that a top might be in. But, there are also signs of key support.  Covered: Head And Shoulders A Broken Neck Bitcoin Down But Not Out Hope Is Not Lost Bitcoin Down: Head And Shoulders With Bitcoin’s failed break above the 50 Day […] The post Bitcoin Clinging To Support — Watch For This Key Pattern appeared first on CryptosRus.

Bitcoin Clinging To Support — Watch For This Key Pattern

Bitcoin down: As Bitcoin continues to cling to life support, signs emerge that a top might be in. But, there are also signs of key support. 

Covered:

  • Head And Shoulders
  • A Broken Neck
  • Bitcoin Down But Not Out
  • Hope Is Not Lost

Bitcoin Down: Head And Shoulders

With Bitcoin’s failed break above the 50 Day Simple Moving Average (SMA), and subsequent move down in the past few days, a potential Head and Shoulders Pattern has formed on the chart.

A Head and Shoulders pattern typically happens at the top of a bullish trend, and signifies a reversal to the downside.  If this pattern breaks, it could mean a prolonged bearish period for Bitcoin.  Since Bitcoin is the king of crypto, this could also lead to doom and gloom across the entire crypto market.

Recommended: What’s Up With XRP These Days?

A Broken Neck

A Head and Shoulders pattern is likely to play out when the “neckline” is broken.  Traders will look at the length from the top of the head to the neckline in order to extrapolate out a potential price target.  In this case, the price target would be approximately $42,338 USD.

 

Bitcoin Down But Not Out

As of the time of writing, the neckline has yet to break.  If it does break, there is no guarantee that the price will go all the way down to $42,338.  In fact, there are numerous places where we might expect to see support come along the way.

We have the 100 Day SMA just above $53,000, a prior peak just below $53,000, the even number of $50,000, and the 200 Day SMA sitting right at $46,000, just to name a few.

Recommended: Citibank Goes All-In On Crypto

 

Hope Is Not Lost

The neckline is also the bottom trendline of a potential bullish Falling Wedge Pattern that we spoke about in previous posts.  As long as it holds, the potential bullish scenario we looked at recently is still very much in play.  A Move that could bring the Bitcoin price up above $85,000.

(image from 11/21/2021)

In other words, we are currently sitting right in between a big move in what could be either direction.  Only time will tell which way it’s going to break.

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Find yesterday’s analysis here:  https://cryptosrus.com/volatile-bitcoin-always-full-of-surprises/

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The post Bitcoin Clinging To Support — Watch For This Key Pattern appeared first on CryptosRus.