Home / Business / Bitcoin may form a retrograde head-and-shoulders pattern, but here's why it does not matter

Bitcoin may form a retrograde head-and-shoulders pattern, but here's why it does not matter

Bitcoin has been able to find some stability after rising above the critical level of $ 8,000 earlier this week, indicating that BTC's bulls are not yet ready to surrender to their bear, meaning more Profits could be imminent.

Although the potential for further gains remains strong, some analysts find that Bitcoin appears to be a notorious head-and-shoulders formation that favors the crypto's bears.

Bitcoin Breaks Over $ 8,000 but Resists $ 8,200 ]

Bitcoin is currently trading at its current price of $ 8,170 at the time of writing, compared to weekly lows of just over $ 7,500. Dollars set last week.

It's clear over a month's duration Bitcoin is currently in a consolidation phase as it fluctuates between $ 7,000 and $ 9,000 and is mostly in the middle of this broad trading range.

Although BTC's recent uptrend certainly looks positive Many analysts believe that an upward movement towards $ 9,000 is imminent. It may be too early to celebrate as the crypto is about to confirm a declining head-and-shoulders pattern.

Cred, a popular title The cryptocurrency analyst on Twitter has recently spoken in a tweet about this technical formation and found that it is still too early to call this formation confirmed.

"$ BTC Looks like a H & S top. Yes, it will not be confirmed until the cutout breaks off. Inexperienced traders are still trading too soon. If the neckline resistance breaks, some early shorts will be offside and I expect a continuation of the trend. Personally not repurchase $ 7.6k if breakdown, "he explained, referring to the following table.

Analyst: Head & Shoulders Formation May Not Matter

Although the Confirmation In view of the fact that this pattern could lead to a sharp price decline for BTC, it should be noted that not all analysts agree with the long-term importance of this type of technical formation.

The Wolf Of All Streets, another popular analyst on Twitter, recently stated that even if Bitcoin forms this kind of technical formation, it could actually be a "counterfeit", the one in the Dow Jones Industrial Average over the last few years Watching months is similar.

Considering that a Head & Shoulders form is the possible one, here's a much clearer H & S recently completed on the Dow Jones ($ DJI). Fake from the century. Even if you have your abominable and not really valid health and working conditions, you can look forward to it, "he said, referring to the following table.

Whether or not BTC will actually end is still unclear To this kind of It is important for traders to understand that this has no long term impact on the upward movement of the cryptocurrency.

  Selected image from Shutterstock. 

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