BTC to GBP Head and Shoulders Hint That It Could Sell-Off Soon

BTCUSD - Bitcoin Price USD
BTCUSD - Bitcoin

On the 4-hour time frame of BTC to GBP, it can be seen that the cryptocurrency has recently made lower highs after a series of higher highs. Consequently, a head and shoulders pattern has formed. This is considered as a bearish reversal indicator. With BTCGBP having already broken the neckline support, it could suggest that the cryptocurrency may soon fall. Near-term support is at 5,242.42 where BTCGBP could find support at the 200 SMA. If it does not hold, the next floor could be at 4,732.23 where the cryptocurrency bottomed on March 30.

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It’s also worth pointing out that BTC to GBP is currently trading above the neckline support around 5,549.00. While it is not uncommon for a market to retest its neckline after breaking it, this price action could suggest that there may still be buyers left on BTCGBP. By connecting the highs of April 7, April 8, and April 12, it can be seen that near-term resistance is around 5,676.80. This price offers a confluence of resistance with the falling trend line and 200 SMA coinciding at this level. Reversal candlesticks at this price could still make the head and shoulders valid. However, a rally above the highs of April 12 at 5,800.00 would invalidate the chart pattern. Instead of falling, it could signal a potential bullish run to 6,090.00 where BTC to GBP topped on April 7.

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