Does Bitcoin Bearish Chart Pattern Mean Bitcoin Price Will Hit $76K Before Trump’s Inauguration?
A bearish chart pattern on the daily timeframe of Bitcoin is threatening to send Bitcoin price to new lows. Here’s what needs to happen to avoid it.
Bitcoin has been in a downtrend since hitting a high of $108,353 on December 17, and Bitcoin’s recent drop below $92,000 has alerted many analysts to the impending confirmation of a bearish head and shoulders chart pattern.
A few daily closes below the pattern’s neckline at $92,000 could be followed by a drop to the pattern’s target at $79,500.
If the pattern acts as a vertical top and bottom, the price target is at $80,000. This could be a pullback to the broadening pattern that was completed with a breakout above 73.7k
According to popular crypto trader Skew, “short selling is the dominant sentiment here,” and “more aggressive short selling means the market is expecting an immediate collapse” from Bitcoin’s current range.
Previously, we had risk reduction and hedge flow
Currently, short selling is the dominant sentiment here, and we will be watching for more aggressive short selling
.”