One of the most discussed topics in the crypto space recently is: Will Bitcoin go down to $20,000 or rise to $100,000 this year? Traders, investors and hodlers scan the financial pages, talk with friends, accumulate a mass of conflicting information, and end up shutting his eyes and making a blind stab in the hope he may come up with the right answer. There are diversified views in the market, but well, all these conflicted views are recorded silently in one single place — the chart. The chart shows the current technical picture of Bitcoin:
- A complex head and shoulders top (2 left shoulders, 1 head and 1 right shoulder).
- A multi-month uptrend was broken back in April.
- There have been 2 failed attempts to break out of the 30-day moving average.
- A newly formed downtrend (red line).
- RSI downward trendline is still in place.
- Bitcoin price holds above $30,000 support
- There is a 1.5 year uptrend currently holding the Bitcoin price (remains in question).
Overall, there are more bear signs than bull signs in the daily time frame. Ever since Bitcoin price broke the neckline (yellow line), in technical analysis, the implication of a broken head and shoulders is that the downtrend has just begun. After that, there have been 2 attempts to break out of the 30-day moving average in vain and the 30-day moving average is still pointing downward. In addition, there is a lot of resistance for the bulls at $42,000, $48,000, $60,000. These price levels are the potential selling pressure for Bitcoin. For Bitcoin to reach $100,000 this year, it has to beat these price levels first then Bitcoin will see the sunshine.
Therefore, it usually takes months to recover as the head and shoulders pattern lasted for 3 months. The key takeaway for Bitcoin price is the 1.5-year-long uptrend and whether the $30,000 support will hold. If they are broken, the next support is likely to be at $25,000 and if not then it may be going down to $20,000.
What do you think ? Share your thoughts on https://t.me/coinflex_EN!
Disclaimer: Do your own due diligence , it’s not financial advice