Bitcoin Price Analysis: BTC/USD the potential head and shoulders pattern that can see $6000 come under threat again
- Bitcoin price on Wednesday seen holding minor gains of some 0.8%, as price action continues to show lack of committed direction.
- BTC/USD has been forming a potential head and shoulders pattern, with the left shoulder and head having already been formed.
The Bitcoin price on Wednesday was seen trading in minor positive territory, up 0.8% through the mid-point of the trading session. The general market however, continues to remain choppy with a lack of committed direction.
BTC/USD since its heavy fall back on 5th September has been very much ranging, no confirmed trend yet has been displayed. There has been much debate and speculation, as to whether Bitcoin has finally bottomed, as it has clearly struggled to find a bottom, but that seemingly being the $6000 area, which has proven to be resilient.
Technically, in terms of chart patterns, an interesting development has been observed, with the potential for a head and shoulders. The left shoulder and head have been formed, with the right currently underway. Neckline is tracking around the $6400 mark. A break of the neckline support could see a fast move lower with $6000 being tested to the downside. Resistance is seen at $6550-600, where the left should topped.
BTC/USD 4-hour chart
-636735689957412374.png)
Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
