Bitcoin (BTCUSD)

BTCUSD

short term (immediate) analysis:

after the break above 9700 price has rejected 9760 and is sitting below 9700 which is major volume zone for the current day. it looks like that shorts are accumulating below this price. potential target for shorts is around 9600 where is the biggest volume from previous day. One hour chart shows lower big vol level at 9585.  

Bitcoin has reached major resistance on the monthly time frame. I think the Bitcoin price should dump hard around the 33000 level. In the past, the price fell about 60% and 75%, but even a 25% fall from 33000 will be very large.

Bitcoin fell down to $27771 soon after my last post. This was a drop of about 15%.

I am bearish on Bitcoin short term. That is, now through the next month or so. Here are the reasons why:

• The monthly chart I posted last time is still in play. Bitcoin recovered from the 15% drop fast and has now surpassed the resistance line I had drawn. However, it is a MONTHLY chart. This month is not over and neither is the next month. This could be a 'false break' as traders call it.

• Bitcoin is reaching exactly 2x the high that was reached in 2017. What this means is that people who bought at the top of 2017 during all the hype, and who held strong without selling this whole time, are now seeing a 100% profit. It is a good profit target for them.

• Bitcoin started falling hard in January 2018. Which was the beginning of the bear market. We are now exactly 3 years later. If history repeats itself, we could see a big drop in Bitcoin price.

I think the price will continue to rise, but conditions like this need to be watched out for, because in this bitcoin movement there is no longer a resistance area, where it is always looking for the highest price continuously, and the danger of this can trigger a pretty drastic decline later

Bitcoin continues to fall due to sentimental fundamentals from several large entrepreneurs mentioning the gloomy future of bitcoin, in addition to the overbough condition of bitcoin, currently bitcoin is looking for a strong support area.

The most appropriate position as bitcoin's first strong support in the $ 44K- $ 45K price range.
So Bitcoin is likely to experience a decline in the next few days.

There is a Head and Shoulders Pattern on the BTCUSD weekly chart. The pattern looks to have good clarity to me. This chart was taken from the FxChoice MT4 platform, but it shows on other platforms too.

Support at the neckline is around the $30000 level. I think that if Bitcoin can not stay above $30000 that it will fall very hard long-term. This is a weekly chart, so it could take months to happen.

The target for a Head and Shoulders pattern is from the top of the head to the neckline. This is about $30000 worth in this pattern. So if this pattern fulfills, this could decimate the BTCUSD price because the neckline is around $30000 and the target is also around $30000.

I am not saying I want this to happen, but it is what I see. There could be some event such as a new law or regulation that could cause this big fall in price. I would suggest anyone who has most of their net worth in Crypto to keep an eye on this $30000 neck line level to see if it holds or not.