Bitcoin (BTC/USD) Cannot Break the $30,000 Resistance!
Will this mean a long-term reversal for the OG cryptocurrency?
Let’s take a look at the daily time frame:
Bitcoin (BTC/USD) daily chart by TradingView
As you can see, BTC/USD has been knocking the key psychological area of $30,000 since mid-March when the pair rebounded from its $20,000 support.
But the force is stronger from the short side at $30,000 and now the BTC/USD pair is forming a potential head and shoulders pattern on the daily time frame.
Will continued rejection at $30,000 lead to a long-term downside? I am keeping my eye on the “neckline” of $27,300 which lines with the 38.2% Fibonacci retracement of the March rally.
A clear break below the $26,700-$27,500 area opens Bitcoin up to move towards the $24,800 area of interest.
But if enough buyers emerge around the ‘neckline’ and $27,300 stops as support, we could see another retest (and maybe a break-up?) of $30,000 resistance.
If you plan to trade the pattern, you need to prepare.
You can’t get out of your trades because you didn’t know Average BTC/USD volatility Or have you failed to account for volatility spikes from FOMC and ECB policy decisions, amiri?
Whichever direction you choose to trade, make sure you use a stop loss and follow your trading plan.