After breaking the important $9,000 mark Bitcoin lost over 30% of its' value as it dropped below $6,000.
Since the tag of the $6,000 handle we have seen a steep V shape retracement with price coming all the back up to test the $9,000 mark once again, this time from the underside as resistance.
If Bitcoin is going to reach new highs it must first overcome this key area of resistance and, conversely, whilst price resides below this area, further declines to the downside remain the higher probability move.
Price is currently forming a Head and Shoulder pattern on the 1h chart suggesting further declines could be imminent.
A break below the $7,800 mark confirms the Head and Shoulder pattern with the next key area of support to the downside just below the $5,000 mark.
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