Bitcoin may be forming a bearish pattern for the head and shoulders, but here's why it does not matter



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Bitcoin managed to regain some stability after a quick rally above the critical level of $ 8,000 earlier this week, signaling that BTC bulls are not yet ready to go down, meaning that additional earnings could be imminent.

Although the possibility of additional earnings remains strong, some analysts tend to note that Bitcoin seems to form a notorious head / shoulders formation that could favor crypto bears.

Bitcoin exceeds $ 8,000, but resistance at $ 8,200

At the time of writing this report, Bitcoin is trading slightly higher at its current price of $ 8,170, up from weekly lows of just over $ 7,500 set last week.

Over a period of a month, it is clear that Bitcoin is currently in a period of consolidation as it oscillates between $ 7,000 and $ 9,000, lying mainly in the middle of this broad range of trading.

Although the latest increase in BTC certainly seems to be bullish and has led many analysts to think that a rise to $ 9,000 is imminent, it may be a little too early to celebrate this success because crypto could being in the process of confirming a model bearish head.

Cred, a popular cryptocurrency analyst on Twitter, spoke of this technical training in a recent tweet, noting that it's still a bit early to qualify this training as confirmed.

"$ BTC looks like a H & S top. Yes, it's only" confirmed "when the neckline is torn. Inexperienced traders are still negotiating models too soon. If the resistance of the neckline decreases, a series of early shorts will be offside and the trend should continue. Personally, I would not buy $ 7.6k in case of failure, "he explained with reference to the table below.

Analyst: Head & Shoulders training may not be important

While confirmation of this trend may lead to a sharp drop in prices for BTC, it is important to note that not all analysts agree on the long-term importance of this type of technical training.

The Wolf Of All Streets, another popular Twitter analyst, recently explained that even if Bitcoin formed this type of technical training, it could actually act as a "pretense" similar to the one observed in the Dow Jones Industrial Average over the past two years. month.

"For anyone who buys $ BTC because they think a Head & Shoulders form can be created, here's a much clearer H & S report that just ended on the Dow Jones ($ DJI). False of the century. So, even if you get your S & S hideous and not really good, you can expect that, "he said, referring to the chart below.

While it is unclear whether the BTC will eventually form this type of technical training, it is important that traders understand that it will not have a long-term impact on the upward dynamics of cryptocurrency. .

Selected image of Shutterstock.



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