Bitcoin Price: Buy on Support at Fib Levels Or Sell on Neckline Break of Head and Shoulders?
A Bullish Bias for Bitcoin Price: Support at Fib Levels
Bitcoin price seems to have found support at its previous highs. On the 4-hour time frame, we can see that the cryptocurrency is currently finding support at $7,766.93 where it peaked on November 30. This area also coincides with the 38.2% Fib level when you draw from the low of January 3 to the high of January 8. There is actually a confluence of support around this price. Bitcoin sellers will also need to clear support around the $7,600 psychological handle. This is where the cryptocurrency previously made highs on December 7 and December 23. Reversal candles around this area could be a sign that there are buyers in the market. They could also mean that BTCUSD may soon rally to its current highs for January at $8,463.57.
A Bearish Bias for BTCUSD: Head and Shoulders on H1
On the other hand, a closer look at the hourly chart of Bitcoin price against US dollar shows a bearish setup. The higher highs on BTCUSD which were followed by a lower high effectively formed a head and shoulders pattern. By attending our free trading course, you will learn that this chart pattern is considered as a bearish indicator. Now, a strong bearish close below neck line could mean that BTCUSD may soon drop to its January 3 lows at $6,900.20.