Will Bitcoin Complete a Bearish Reversal Soon? | Technical Analysis

BTC/USD fell sharply yesterday and today after Elon Musk tweeted that Tesla would stop accepting the cryptocurrency as payment for its cars. The tumble was stopped near the neckline of a possible “head and shoulders” pattern that seems to have been forming since early March. Although such formations tend to be bearish, we prefer to wait for its completion before getting confident for further declines. Thus, for now, we will take a neutral stance.

If indeed the bears stay in the driver’s seat and push the crypto below the H&S’s neckline and the 43900 zone, marked by the low of February 26th, more market participants may decide to sell, as this may be interpreted as a trend reversal signal. We may then see declines towards the 38700 area, marked by the inside swing high of January 29th, the break of which could carry larger bearish implications and perhaps pave the way towards the lows of January 22nd and 27th, at around 28700.

Taking a look at our daily oscillators, we see that the RSI lies below 50 and points down, while the MACD runs below both its zero and trigger lines, pointing south as well. Both indicators detect increasing downside speed and add to the chances that we may see a H&S completion in the not-too-distant future.

On the upside, a recovery back above 52700, a resistance defined by the inside swing low of May 5th, may discard the H&S pattern and perhaps encourage the buyers to push the action towards the peak of the right shoulder, at around 59500. If they are not willing to stop there, then we may see them sailing towards the crypto’s all-time high, at 64775, which was hit on April 14th.


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Yeah Elon Musk just killed the bull run by decrying bitcoin (and rightly so), it is an environmental disaster.

But really surprised he didn’t even spend a few minutes researching the coin, shows a lot about his lack of research skills.

He helped built an electric car company, you would think he cared about looking into the environmental impact of the things he bought and promoted.

Perfect example that money doesn’t bring you sense, even if you have a lot of cents.

Why xrp and CasinoCoin are much better long term investments because of how they are environmentally friendly, fast and practically free to trade.