Bitcoin has been able to find some stability after rapidly increasing back over the critical level of $ 8,000 earlier this week, and signaled that BTC's bulls are not yet ready to surrender to the bears, meaning further gains may be imminent.
Although the potential for further gains remains strong, some analysts may notice that Bitcoin appears to be a notorious head and debt reformation that may favor the crypt bears.
Bitcoin Breaks Over $ 8,000, but Faces Resistance at $ 8,200 ]
At the time of writing, Bitcoin is trading slightly up to the current price of $ 8,170, up from weekly decline of just over $ 7,500 put into last week.
Over a month's time, it is clear that Bitcoin is currently in a consolidation period, as it has fluctuated between $ 7,000 and $ 9,000, mostly in the midst of this broad trading area.
Although BTC's recent relegation certainly seems to be bu Litt and has led many analysts to believe that a move up to $ 9,000 is close, it may be a little too early to celebrate, as the crypt may be about to confirm a bearish head and shoulders pattern.
Cred, a popular Cryptocurrency Analyst on Twitter, talked about this technical formation in a recent tweet, noting that it is still a little too early to notice this formation as confirmed.
"$ BTC Looks Like an H&S Top. Yes, it's not" confirmed "to the neck breaks. Inexperienced traders still deal with patterns too early. If the neck resistance breaks, a bunch of early shorts will be offside and I expect trend extension. Personally rebuying not $ 7.6k if breakdown, "he explained referring to the chart below.
Looks like an H&S peak. Yes, it is not "confirmed" until the neck breaks. Inexperienced traders still deal with patterns too early.
If the neck resistance breaks, a bunch of early shorts will be offside and I expect trend extension.
Personal buyback not $ 7.6k at breakdown. pic.twitter.com/zT8iqZ0cD1
– Cred (@CryptoCred) June 13, 2019
Analyst: The head and the debt reform may not be relevant
Although the confirmation of This pattern can lead to a sharp fall in prices for BTC, it is important to note that not all analysts agree on the long-term significance of this type of technical formation.
The Wolf of All Streets, another popular analyst on Twitter, recently explained that although Bitcoin forms this type of technical formation, it may actually be a "fakeout", similar to what is seen in the Dow Jones Industrial Average in Over the last couple of months.
"To all shorting $ BTC because they think a Head & Shoulders can form, here is a much clearer H & S recently completed at Dow Jones ($ DJI). Fake out of the century. So even if you don't get your hideous and not really valid H&S, you can make this look forward to, "he said, referring to the chart below.
To all shorting $ BTC because they think a head and shoulders can form, here is a much clearer H&S recently completed at Dow Jones ($ DJI). Fake out of the century. So even if you get your hideous and not really valid H&S, you can make this look forward to. pic.twitter.com/BEwV4SQyvo
– The Wolf of All Streets (@scottmelker) June 13, 2019
Although it is still unclear whether BTC will actually end up forming this The type of technical formation, it is important for traders to understand that it may not have a long-lasting impact on the upward speed of the crypto curve.
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