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
If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.
A massive decentralized finance trade has drawn widespread attention after a user attempted to purchase…
Ethereum co-founder Vitalik Buterin has unveiled a newly released Ethereum Foundation (EF) Mandate, outlining the…
One of the world’s most prominent cryptocurrency conferences, TOKEN2049, has officially postponed its upcoming Dubai…
Discussions around blockchain technology often place smart contracts at the center of everything. But recently,…
Interest around crypto exchange-traded funds (ETFs) continues to grow, and new data suggests that XRP-related…
Security researchers at Ledger say they have uncovered a serious vulnerability affecting Android smartphones that…