BTCUSD update: Technicals indicate BTC might plummet to $8.8k soon

The Head and Shoulders is a Bearish pattern. Its formation on a one-hour timeframe indicates the possibility of BTCUSD dropping to $9,375.25 and then to $8,814.86.

BTCUSD experienced its third halving on May 11. Post the previous halving in July 2016, Bitcoin skyrocketed. It made this halving all the more special. Investors were keenly waiting to observe the Bull run by BTC.

BTCUSD crossed $10,300 on June 1. Bitcoin enthusiasts burst in joy and started to feel that finally, their investments were beginning to grow. However, BTCUSD fell devastatingly on June 2. 

 

BTCUSD: A synopsis of the recent ups and downs

Bitcoin’s recent fall happened before investors could understand what was happening. But then, BTC is known to drop such surprise bombs. The whales play an active part in the market manipulations that cause these crashes.

BTCUSD is currently struggling around the $9,665 range. It was earlier struggling below the support level at $9,621. Now that it managed to get above the support level, BTCUSD might stay in this region. 

 

Technical analysis of the Head and Shoulder pattern in BTCUSD

Source: TradingView.com

The hourly chart for BTCUSD shows the formation of the Head and Shoulders pattern, which is a Bearish pattern. Two lower peaks on either side surround the head or the highest peak. These two smaller peaks or shoulders are marked in the chart as S1 and S2.

BTCUSD could decline to $9375.25, which is the first target level. The second target zone is much lower at $8814.86. 

The RSI or Relative Strength Index is currently neutral. BTCUSD is presently at the same level as the 20-period Exponential Moving Average.

Based on the technical indicators, BTC is likely headed for a downward move. However, when it comes to BTC, things could change dramatically in the blink of an eye. The confirmation will come if BTCUSD starts moving down from here.

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