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Bitcoin Head And Shoulders Top? Watch This Support Level

By Chris KimbleCryptocurrencyJun 10, 2021 03:24PM ET
www.investing.com/analysis/bitcoin-head-and-shoulders-top-watch-this-support-level-200585403
Bitcoin Head And Shoulders Top? Watch This Support Level
By Chris Kimble   |  Jun 10, 2021 03:24PM ET
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Bitcoin Long-Term Weekly Chart.
Bitcoin Long-Term Weekly Chart.

Last November, we highlighted a cup and handle bullish pattern on Bitcoin that served as a base for a big rally. All together, Bitcoin rallied from roughly $4,000 last March to $64,000 this April! Wowsers!

But since peaking in April, Bitcoin has fallen more than 50% to roughly $29,000. Cryptocurrency trading isn’t for the faint of heart.

This brings us to today’s long-term “weekly” chart of Bitcoin and the potential for a topping pattern that could lead the cryptocurrency lower yet.

As you can see on today’s chart, Bitcoin has been in a long-term rising bullish channel marked by each (1). As well, we have a significant high and low within the channel at each (A). Using applied Fibonacci, we can see that the 29,000 level at (2) is the 161% Fib. This also marks the lows of the recent sharp decline.

As well, a pattern with the rough sketch of a head-and-shoulders top has taken shape. I have no idea if this is a true head-and-shoulders top, but I do know that the recent lows and the 29,000 level are critical support for Bitcoin.

Odds favor this support level will hold at (2). If this support fails, however, expect selling that would frustrate the bulls.

Bitcoin Head And Shoulders Top? Watch This Support Level
 

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Bitcoin Head And Shoulders Top? Watch This Support Level

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Comments (1)
Luis Sa
Luis_S Jun 11, 2021 5:40AM ET
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From low March 20 to high April 21 Btc is at 50% which is normal for a pullback it is still above 61.8%, but I think it can come to 20,000 support
Luis Sa
Luis_S Jun 11, 2021 5:40AM ET
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On the way up there were big volumes at 20,000 and 30,000
 
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