The king of cryptocurrency, Bitcoin has been gaining momentum for the last few days after dismayed cries of possible Bitcoin price fall to $7,000.
Since then Bitcoin’s price has been moving steadily and at the time of writing, BTC is trading hands at $9408.29.
Bitcoin price chart by Trading View
On the 24-hours chart Bitcoin price trend shows a large head and shoulder pattern that is quite ragged on the right side which is the deciding end after a head and shoulder pattern is formed. This is a sign of weakness in the Bitcoin price movement.
It may be a short-lived fluctuation since the Whale Alert service also reported one heavy sell-off today, while twice the amount was in purchases also reported within the last 24-hours.
🚨 1,200 #BTC (11,289,130 USD) transferred from unknown wallet to #Bitstamp
— Whale Alert (@whale_alert) May 29, 2020
Is Bitcoin price moving in or out of the head and shoulder?
When it comes to slightly larger picture it is quite evident that Bitcoin has been avoiding possible head and shoulder patterns for days now.
The first possibility came on the 27th of May after the BTC price flash rise from $8900 to the $9100 range.
Bitcoin price chart by Trading View
BTC price managed to avoid a dump or even another head and shoulder formation on the 27th and the following day on 28th BTC price went for another rise from the $9100 range to the $9300 hundred range.
At the time of writing, however, Bitcoin charts are showing a small head and shoulder appearing on the charts. If the formation plays out negative as most head and shoulders do, BTC price can fall back down to the $9100 or even further below to the $9000 range.
However, if the cryptocurrency finds good support, all would be fine. As unpredictable as Bitcoin is, a swing in either direction is very much possible at the moment.
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.
Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
