Bitcoin (BTC) Price Analysis – New Head-and-Shoulder Pattern May Send Bitcoin To November Low.
Login

Bitcoin (BTC) Price Analysis – New Head-and-Shoulder Pattern May Send Bitcoin To November Low.

Estimated Reading Time: 2 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Michael Fasogbon

Updated:
The last 7 days of price actions have made Bitcoin stay above $7000 for the month of November. Starting the new month on a short opening could be a bit send a negative sentiment in the market if Bitcoin fails back roll back to November low. However, there’s hope for a bullish continuation if buying pressure resumes.

Bitcoin (BTC) Price Analysis: 4HChart – Bullish

Key resistance levels: $7445, $7844
Key support levels: $7000, $6800

Bitcoin’s showing a sign of weakness on the 4-hour time frame, although the bullish setup would remain valid if Bitcoin can bounce back at $7000 support. Meanwhile, there’s lower support at $6800, followed by $6600 – the November low. Breaking this last bullish defence line might cause a lot of selling pressure in the market.

BTCUSD-4H-Chart-December-2.png

But if the market can find support at $7000, a huge buy-off should be expected as Bitcoin’s price could swing to 8400 in no time. However, $7445 and $7844 resistances are important levels for the buyers to overcome. Despite the recent drop, Bitcoin is still within a good trading range on the technical indicator, but falling to the lowest region may lead to a heavy sell.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

Looking at the hourly chart, we can see that Bitcoin is weak for the past two days now. More importantly, a heard-and-should pattern is formed but yet to play out. This pattern formation is a short-term sell setup, which could slip BTC price to $7000, $6800 and possibly $6600 support.

BTCUSD-Hourly-Chart-December-2

If this head-and-shoulders pattern fails to play out, Bitcoin is likely to bounce back to $7400, $7600 and $7800 resistance. In fact, the hourly MACD is suggesting a downward movement on the short-term outlook. Conversely, the RSI indicator is also showing weakness but a possible rebound is likely at the oversold level.

BITCOIN SELL SIGNAL

Sell Entry: $7239
TP: $7062
SL: 7510

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News