Bitcoin to Take a Drop as it Forms an H&S Pattern, Analyst says, It’s a “Bear Trap”
- Bitcoin forming a head and shoulders pattern that signals the end of an upward trend
- BTC price in an extended correction of a bull market
- But it’s a bear trap, BTC price to head above $11,600
Bitcoin is still trading in red by 0.21 percent at $10,559, down after climbing above $11,000 during the weekend.
Meanwhile, the trading volume is extremely low, below $1 billion at $827 million, as per Messari’s real 10, 24-hour volume.
Since hitting $13,900 on June 27th, Bitcoin hasn't been faring well, as has been expected per historical data. In July, we went from around $11,400 to the low of $9,050 on July 17th.
Bitcoin forming a head and shoulders pattern that signals the end of an upward trend
Though we have recovered from that loss, we might get back to that level again as Bitcoin forms the shoulder of the head and shoulders pattern.
The analyst that goes by TheBootMex on Twitter says a look at the weekly chart of the Bitcoin price shows we are in “extended correction of a bull market.”
If you look at weekly, you can clearly see we are in extended correction of a BULL market. If you look at 1d/3d, you'll see a classical ABC correction that could be over. Looking at 4h we can see that we made a low at 9100, higher low at 9300 and changed mid-tf structure into
— TheBoot (@TheBootMex) July 21, 2019
He explains, how per 1d/3d, a classic ABC correction that could now be over. On the 4h price chart, he points out how we made a low at $9,100, higher low at $9,300 and then changes in the middle of the structure into bulls again.
However, we found resistance at $11,200. The analyst says challenging this level and falling back could likely be to form the right shoulder of the head and shoulders pattern.
A head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the two outsides ones are close in height with the middle one being the highest. This pattern, in technical analysis describes a specific chart formation that predicts a bullish to a bearish trend reversal.
Believed to be one of the most reliable trend reversal patterns, it is one of the several top patterns that signal an upward trend is nearing its end.
Now, on the 15m/hourly, he notes a triple bounce from $10,320 that the analyst says is trying to challenge $10,500, “confirming possible short-term market structure change.”
But it’s a Bear Trap, BTC Price to Head Above $11,600
According to the market trader and analyst, Benjamin Blunts, this is nothing but a bear trap.
In the chart shared by him, he points out the right shoulder we made just before the weekend and the head on the weekend when we moved above $11,000. Currently, we are on the left shoulder.
Blunts only sees Bitcoin dropping to just below $10,200 per this pattern but not to break the $10k level. After a few zig-zags, he projects the price to cross $11,600.
you'll be seeing a whole bunch of btc head and shoulder memes getting posted in the next 24 hrs but dont be fooled.
its a bear trap pic.twitter.com/i34e3O30z2
— 🍄🌲Benjamin Blunts🌲🍄 (@SmartContracter) July 22, 2019
Bitcoin’s price is $49,512.36 BTC/USD exchange rate today. The real-time BTC market cap of $926.41 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $24.97 Billion and live coin value change of BTC -3.45 in the last 24 hours.