While Bitcoin has appreciated tremendously during November and most of December, the price charts are showing many signs of trend exhaustion. In my prior Bitcoin technical analysis article, I speculated that another descent towards the pivot zone at $442 would break the long-term trend line, and that is exactly what happened yesterday. Price plunged below $442 and the trend line was officially broken.
The pivot zone at $442 – which provided support between the 14th and 15th of December – has now turned into resistance.
Although the higher time frame charts are very bearish, the 30-minute chart is showing a Head & Shoulders formation. This formation indicates that price could attempt another run towards the resistance area at $442. If price breaks under the right shoulder, then another precipitous sell-off is very likely to follow.
Disclaimer: This is not trading/investment advice!
Image Source: 1
Chart source: https://www.okcoin.com
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