Bitcoin price is currently struggling to get back above $ 60,000, but bears have so far been unable to stave off price movements from local highs. The push and pull between the two opposing market forces has resulted in a possible bearish price pattern that anyone watching cryptocurrency might want to worry about.
If the bulls finally shrug off their recent attempt to take over the bears, new highs are imminent. However, if this technical pattern is confirmed, the first significant correction could come sooner rather than later in Crypto.
Bitcoin price spikes could form the head and shoulders reversal pattern
Bitcoin price movement in 2021 so far has been like a rocket ship that no atmosphere could penetrate and that skyrocketed without tremendous resistance. It was only recently, after the cryptocurrency hit current highs of over $ 60,000, that it struggled to hit new highs with ease.
The most recent resistance level has led to week-long consolidations that switched from bearish to bullish and back in shorter periods of time, while the underlying trend has remained “only up”.
Related reading | How Bitcoin Price Could Lose 50-70% If Momentum Wanes
The natural tug-of-war between buyers and sellers has left a zigzag pattern on the price chart that – if things turn away from here – could soon form a head and shoulders reversal pattern.
The pattern is only a little more than two-thirds of the way through and is currently near the pattern’s turning point.
A head and shoulders could take bulls by surprise, before moving higher again | Source: BTCUSD on TradingView.com
The ongoing showdown between bullish BTC fundamentals and bearish techniques
The battle between buyers and sellers of Bitcoin is currently at an impasse, and when either side finally waves the white flag, a long streak of green or red could follow.
If the pattern breaks with a surge to a new all-time high, the cryptocurrency bull run is back in full swing and could result in prices much closer to $ 100,000 per coin in the next month or two.
If price action cannot sustain and drive higher, the pattern will confirm that any long positions built in the region will be forced into cover and a much larger downward move could result.
Technically, based on the measurement rule, a return of around USD 40,000 per coin would be the goal of the bearish structure, but it would in no way jeopardize the larger bull trend.
Related reading | Bitcoin techniques are overheating, but bullish fundamentals remain unaffected
In fact, a correction could be healthy even if price action is lower than most would expect. Technical indicators are overheated and market sentiment could use a reality check.
Regardless of these factors, however, the bull run is not going anywhere anytime soon. Despite the hot and troubled indicators, fundamentals have barely declined in the face of the ongoing correction to the consolidation slash.
The few coins that are left in exchange are being issued at the rate of tens of thousands per week, and most adoption metrics have not yet hit previous signs that could suggest a peak has been reached.
All of these factors suggest that Bitcoin could see an overdue correction, but that any dips would continue to be bought up by the institutions.
Featured image from Pixabay, Charts from TradingView.com