Bitcoin price has been trading higher as of late. However, technicals suggest that the bullish run on BTCUSD could soon be over.
On the daily time frame, it can be seen that the cryptocurrency is trading around its previous lows. By drawing the Fibonacci retracement tool from the high of March 6 to the low of March 13, it can be seen that the area around 6,845.00 also coincides with the 61.8% Fib level.
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A closer look at the 4-hour time frame also shows more bearish signals. For one, BTCUSD is trading below the rising trend line from connecting the lows of March 16, March 30, and April 1. The cryptocurrency has also made lower highs after a series of higher highs. Consequently, this has allowed for a head and shoulders chart pattern to form. This is widely considered as a bearish reversal indicator and a strong close below the neckline support at 6,680.06 could trigger a sell-off. Near-term support for BTCUSD is at 5,871.50 where the cryptocurrency bottomed on March 23 and March 29. If support at that price does not hold, the next floor could be at 4,541.90.
Alternatively, a close above the high of April 12 at 7,200.00 would invalidate the head and shoulders pattern. It could then signal a potential rally to 7,466.57 where it topped on April 7.
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