Bitcoin is trading between 0.382 Fibonacci levels and the key liquidity area of 28000. The H&S pattern without a proper reaction could confuse the market. What to expect from the price?
In practice and statistically, the strongest moves occur after a false breakdown. The set-up H&S made a false break of the ascending channel, the pattern base is broken, but the price is consolidating above the strong support from the W1 timeframe - 2654. If the bulls hold this level, the price will start to break the reversal set-up.
The cryptocurrency flagship is consolidating between the Fibonacci levels of 0.382 and 0.236. A break-up of the upper boundary will return the price to green zone and thereby the price will get a good potential for further strengthening towards 30,000, but a break-down of the lower boundary of the range will send the price to the retest of 0.5 Fibo and a strong support level from the weekly timeframe 25053, which will make the whole market nervous
The way I see it, the correction in bitcoin is reasonable and after the strong rally we should have expected this kind of reaction. From the point of view of technical analysis, the asset should gather the necessary liquidity for a further move in one direction or the other.
- There is an increasing level of fear of further declines in bitcoin
- Lightning network has entered into a partnership with chainalysis and TRM Labs, allowing it to control all payments through the said network
- Cryptominer Marathon Digital and Brink will raise $1 million to support BTC developers
- BTC mining complexity continues to break records
- The number and volume of large BTC transactions continues to grow.
- The current halving cycle in bitcoin is 76% complete
I think that the correction with the average probability can continue up to the level of 25400 - 25053, but if the price overcomes the area of 28000, the growth will start earlier. Since we see bullish dynamics on the global timeframes and overcoming the strong resistance zones, after the correction and rest, the growth may resume.