The king of cryptocurrency Bitcoin BTC is on a roll again, and the Bitcoin price has hit $10,000 for the second time in the same week. Not surprisingly, the hike came in a flash rise, which seems to be the popular Bitcoin trend for quite some time now.
The rise came at the $9900 range and took the price as high up as $10379, quickly dropping below the to the $10200 range within the same hour. Since the rise, Bitcoin price is back up to the $10300 range twice and stands at the same point at the time of writing.
On the other hand, the real question is not the price hike but whether or not the BTC price movement would remain in the same region and on the same wave-length. Would the current trend carry the price up to the next level or surprise the cryptocurrency sphere by hitting the Tom Lee Bitcoin price prediction mark at $40000.
Bitcoin price movement: What to expect?
Truth be told, BTC has a thing for head and shoulder formation, and the price is often seen moving into or out of this formation. In the case of Bitcoin, we have observed that head and shoulder patterns lead to a further crash or an imminent rise.
Observing the one month chart, we can see that BTC price went into a back to back head and shoulder pattern at points A and B that gave way to a crash. Following the crash, the price went into another head and shoulder pattern before gaining the momentum to get out of the $8000 range and into the $9000 range.
While at A2 Bitcoin had just emerged out of a head and shoulder formation yesterday, and it seems that the B2 formation is going to be another head and shoulder. While the support levels are strong at $10284, $10235, $9954 marks respectively; if the head and shoulder pattern plays out in a similar fashion as A and B, a crash is imminent.
Featured Image by Motnight
Disclaimer: The information provided is not trading advice but an informative analysis of the price movement. Cryptopolitan.com holds no liability towards any investments based on the information provided on this page.