Bitcoin Price Analysis: Bitcoin Signals Reversal Following H&S Breakout

• On the hourly chart, Bitcoin is consolidating around $6700 following a sharp recovery from $6600 level
• After dropping off a month’s wedge, Bitcoin confirms reversal with a head-and-shoulders pattern on the 4-hours chart.

Starting the week with a 3% loss, Bitcoin’s price is now floating around $6700 against the US Dollar following a huge dump from $7191 over the last 24-hours. Due to this bearishness, the entire crypto market cap is now trading under $200 billion. Bitcoin would need to reclaim the $7450 (current high) to regain momentum.

Key resistance levels: $7000, $7191, $7450
Key support levels: $6400, $6200, $5880

Bitcoin (BTC) Price Analysis: 4H Chart – Bearish

Bitcoin started bearish after breaking a four-week rising wedge on April 11. Following this drops to $6800, Bitcoin consolidated for a while and made quick gains to $7191 (to retest the grey mid-term resistance line) yesterday; although Bitcoin dropped back and found new support around $6600 today.

Meanwhile, the latest drop below $6800 was a confirmation for a bearish reversal with a head-and-shoulders pattern, as shown on the price chart.

If Bitcoin losses the $6600 support, $6400 and $6200 (marked blue) would be the next selling targets for sellers. Below this support lie $6000 and $58800 – the grey horizontal area. From above, Bitcoin is holding resistance at $7191 and $7450. The bulls need to reclaim $7000 level to regain control.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bearish

Looking at the bigger picture, Bitcoin saw significant volatility over the past 24-hours. We can see that the bears are back in the market after a quick retest to the upper boundary of the channel. As of now, Bitcoin is in the middle of consolidation following a recent break below the white descending channel.

Although the price is currently pinned at $6600. A climb above $6800 should provide buying to $7000-$7100 area, which is around the channel’s resistance. A break above this channel could activate short-term gains to $7450 and beyond. However, If Bitcoin’s price drops below the yellow line along with $6600, the next support area to keep in mind is $6500-$6400.

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results