Bitcoin Hits $67K: Buy the Dip?
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Bitcoin's price correction to $67,000 has traders asking one question: Is it time to buy amid dip? We explore the data and risks to help you decide.
The BTC weekly chart shows the Head & Shoulders pattern, the strongest bearish reversal signal. This indicates that the uptrend (bullish) has reached the point of exhaustion.
BTC faces two extreme scenarios: a Rebound to us$110,000 (right shoulder target) or a critical fall to us$67,000 if the Neckline line is broken.
Monitor US$110,000 (Resistance) and Neckline. The pattern is void if the price breaks above $126,000.
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Bitcoin at Crossroads, danger of Bearish Reversal lurks
The Head & Shoulders pattern is known as one of the most reliable and powerful Bearish Reversal signals.
This indicates that the dominant bullish trend may have reached a point of exhaustion and is ready to reverse. Therefore, it is important to detail how this technical formation looks on Bitcoin's current weekly chart.
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Crucial levels to watch for this week:
- Major resistance$110,000
- Defensive line / Neckline US$ 86,000
- Target of US$67,000 decline
How Did This H&S Pattern Form On The Weekly Chart?
The formation of this pattern began with the Left Shoulder formed around the level of US$110,000. Subsequently, this was followed by the achievement of the Head, which is a historical high that soared above US$126,000.
At the moment, the price is in the process of forming the Right Shoulder, where the nearest resistance target is again in the area of$110,000.
The entire critical structure is then supported by the Neckline, an oblique support line that is the key to determining the validity and ultimate fate of the pattern.
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Worst case scenario: Drop to $ 67,000
The strength of the Head & Shoulders (H&S) pattern lies primarily in its confirmation. That is, this pattern is not considered fully active as long as there is no breakout.
Strictly speaking, this new pattern will be a valid trend reversal signal only if the price experiences a Breakdown—that is, breaks through and holds below—the Neckline. It is this crucial confirmation that will trigger a large Bearish scenario.
If the Neckline manages to break through with a large volume, the technical downside target of the H&S pattern can bring BTC prices to fall to the Bottom of us$67,000,”
This is the most feared Reversal scenario. If US $ 67,000 is reached, panic selling and massive liquidation are expected to occur.
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When Is The Head & Shoulders Pattern Declared Void?
The H&S pattern will be declared void if the Bulls ' strength is able to break through and hold strong above the Head peak (above us$126,000).
“If a new All-time High is formed above$126,000, all Bearish sentiment will disappear. The market will continue a very strong Bullish trend.”
*Note: Just like went to real market buy in low price and sell in high price, that is the Strategy that had been being done by retailer.
*Disclaimer :
The Analyses expressed on Umetonews are for informational purposes online.
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