Bitcoin price has been on a downtrend in the past five days, and it all started with yet another head and shoulder pattern.
The pattern formed on the 24th of May, and before the day end, Bitcoin price was dwindling around the $8700 mark following a flash drop from slightly above the $9000 mark.
The crash came a little before the day end, and since then, the cryptocurrency crossed the $9000 psychological range only once and very briefly for that matter.
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Bitcoin price is down, but more importantly, it is out of the ascending channel and is now vulnerable to a downside correction, experts at BitcoinOoda believe.
Bitcoin price chart by Trading View
Technically, rallies to the bottom range of the channel are to be sold. Our downside targets in this correction are $8000 and then the $7000 level. Realized 10-day volatility is down to 60 percent, which happens to the on one of the lower levels in the last three months, while the long weekend in the US seemed to affect trading activity globally.
However, support levels are holding strong at the $8000 mark, for now, further below strong support is seen in the $7800 range. While whales are also accumulating heavy amounts of Bitcoin and such moves can sway the market upwards.
While the correction can turn the cryptocurrency down to a new low near the $7000 mark, it may as well turn the cryptocurrency realm in a downtrend. If such a crash happens, it may be very bad for not only the cryptocurrency sphere but also the global economic situation in the wake of China’s Digital Yuan launch.
Disclaimer: The information provided is not trading advice but an informative analysis of the price movement. Cryptopolitan.com holds no liability towards any investments based on the information provided on this page.
