- Bitcoin price analysis reveals that the cryptocurrency is finishing a head and shoulder pattern.
- If the pattern strikes, Bitcoin price will fall further down to the $44,200 mark.
- Current support lies at the $44,487 mark.
- Current resistance lies at the $44,976 mark.
Bitcoin price analysis reveals that the king of cryptocurrency is emerging out of a head and shoulder pattern. The head and shoulder pattern is a bearish pattern, and if the pattern strikes, the king of cryptocurrency can fall further down towards the $44,200 range. During the last 24-hours, Bitcoin has fallen by 0.28 percent and by over 13 percent during the past seven days. Bearish signs are engulfing the charts since the 7th of September flash crash owing to a $3.7 billion liquidation.
As evident from the chart, the king of cryptocurrency is either emerging out, which means the bearish trend has passed already. In that case, there is a smaller reverse head and shoulder pattern also in the making. Otherwise, the head and shoulder bearish strike is about to hit the king and take the price further down.
Bitcoin price analysis 1-day chart holding bearish sign
The one-day candlestick Bitcoin price analysis chart reveals bearish signs all over. The upper Bollinger band is serving as the strongest resistance point found at the $52,294 mark. The volatility has slightly increased compared to the 7th of September. The Bollinger bands’ average is posing resistance at the $47,989 mark. The nine-day moving average is posing resistance at the $47,201 mark.
Both the Bollinger bands’ average and the nine-day Moving average are giving bearish signals. The lower Bollinger band average is found at $43,683, serving as the strong support mark. The relative strength index (RSI) is also giving off a neutral sign with a score of 43.65.
BTC/USD 4-hour price chart confirms bearish trend
The four-hour Bitcoin price analysis chart confirms the bearish struggle the king of cryptocurrency is currently going through. The volatility has decreased on the 4-hour chart, which shows a good sign. The upper Bollinger band is found at the top resistance point of $46,662, while the lower band is available at $44,418.
The Bollinger bands’ average and the nine-day moving average are still giving bearish crossovers at the values of $45,540 and $45,442, respectively. The RSI is also giving neutral signals slightly leaning towards the bearish side with a score of 35.37.
Bitcoin price analysis conclusion
If the current Bitcoin price movement completes the head and shoulder pattern, a blowback to the $44,200 mark is expected. However, if the damage is already done, the short inverse head and shoulder can push the price back up to the $45,000 mark. If the current support tallies, the price is likely to hit a slightly better high, moving into gains instead of losses on the charts. If the current support falters, the king can drop further down in that scenario as well.
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