Inverse head and shoulders pattern continues to form. This would allow the right shoulder (where the current price action is) to come down quite a bit further, without nullifying the pattern. This means that the $BTC price could come all the way down to that $51,000 support, before potentially reversing strongly. If this trend is broken, and a higher high can be made, stand by for a strong $BTC upsurge. However, if the line breaks to the downside, expect a continuance of the downtrend.
Bitcoin (BTC) is facing difficulties yet again, dropping below $57,000. Yesterday, approximately 4,870 BTC were offloaded from Spot Bitcoin Exchange-Traded Funds (ETFs), indicating that even institutions are experiencing some discomfort
Weaker hands being shaken out
Once more finding itself in a slump, the Bitcoin price is hinting at further drops. For five consecutive days now, there have been outflows from Spot Bitcoin ETFs, which isn’t making things any better. It seems that some large investors might be losing confidence, possibly due to the prolonged period of sideways and falling prices for the leading cryptocurrency
In essence, many institutions are likely to persist in their beliefs because their timeframes tend to stretch much further than the typical retail investor. This situation could indeed trigger a well-known phenomenon in the market where stronger players are squeezing out the weaker ones – a process that analysts often refer to as “shaking out the weaker hands.”
Battle to hold $56,700
Over a brief period, the Bitcoin (BTC) price appears to have fallen from its channel, testing the support provided by the trend line that intersects with the significant $58,000 horizontal mark, which is now acting as resistance
As an analyst, I’m observing that the current price is fighting to maintain its position above the significant support level at $56,700. If, unfortunately, it breaches this support and confirms a drop below, a potential steep decline could ensue, potentially taking us down towards the low $50,000s
Inverse head and shoulders pattern continues to form
Looking at the day-to-day trends, it’s clear that Bitcoin’s price continues to move comfortably within a bull flag or expanding wedge pattern. However, whether this trajectory will remain secure if the price drops to $51,000 is yet to be determined
It appears an inverted head and shoulders pattern has begun to take shape. If this pattern continues, the current peak (or ‘head’) could drop significantly more, without disrupting the pattern. This suggests that the Bitcoin’suggests This implies that $BTCBTC’s price might be following an inverted head and shoulders pattern. This means that the current high point (referred to as the ‘right shoulder) may see a substantial decrease could drop noticeably, possibly dips down towards the $51,000 is likely to serve as solid support, could potentially dip significantly lower before showing signs of a robust reversal
Higher time frame – what’s the fuss about?
Stepping back to observe the broader picture on a weekly scale, one may question why there’s such excitement. With a bull flag taking shape and prices surpassing most of the previous bull market’s framework, the situation appears rather optimistic
Here’s one example of how a market can function as a platform for the continuance of this bull market:
The phrase “The line shows a strong downward trend” is not easily understood. It’s a series of downward trends that can be broken. This line is also a series of downward trends. This trend can come down to test this line before it breaks
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2024-09-05 14:17