Weekly Reversal Appears Weak – Is Bitcoin In For A Drop Again?

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30 November 2019 | Updated: 30 November 2019

During the week, Bitcoin recorded a monthly low of $6600 after witnessing a series of decline for about four weeks. On November 25, Bitcoin regained strength back above the $7000. This recovery led to a forming an inverse head-and-shoulder pattern which was quite significant in the weekly trading with a lot of bullish sentiment.

Meanwhile, Bitcoin faced a critical resistance on the iH&S neckline ($7400), which eventually got broken after notable volatility that shot the price straight to $7670.

Recently, some crypto traders and analysts forecast that Bitcoin’s price is more likely to face another downward move. This time, a lot of bearish sentiment appeared to be surrounding the leading cryptocurrency again as some analysts believed that the inverse head-and-should pattern appeared to have reached a key short-term resistance level of $7800 – where a possible bearish leg is more likely to play out.

Having said these, Bitcoin has now formed a rising wedge pattern which seems to be poised for a heavy drop. Following a twit by a trader, who recently shared a view on the next possible moves for Bitcoin. Here is what Catering Clark opines:

Going back to the recent prediction, Bitcoin may create a new mid-year low if the current wedge pattern spotted on the hourly chart plays out. Another interesting piece was twitted a few hours ago by codey, a Bitcoin Content Lord and Digital Creative.

The above statistical graph shows the comparison between block reward and BTC price trend. As we can see, Bitcoin is now closing an “infection points” after crossing the diagonal price line on a third attempt. From a technical perspective, Bitcoin’s price is more likely to drop a bit soon before resuming an uptrend.

However, we have not seen a strong reversal yet. Perhaps, that would happen if Bitcoin can make $8000 and most especially $9000. But considering where Bitcoin’s price is currently stuck – in a tight wedge, there’s a high chance for a fall than a rise.

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Michael Fasogbon

Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.