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

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.

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.

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