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Bitcoin price falls below critical weekly support at $14,000 but can bulls hold their ground?

Bitcoin price earlier today broke below $ 11,500 and fell below $ 11,400 in a matter of hours. Currently, Bitcoin is trying to find support at the critical level. But why is this level so important for the bulls to sustain? And if this level is lost, where could the targets lie below?

Bitcoin price dips below critical weekly support at $ 14,000, but can the bulls hold their stance?

Bitcoin’s uptrend is currently in jeopardy. Indicators suggest that while the long-term uptrend is building on high timeframes, on smaller timeframes, the short-term downtrend is likely to end. The question is, will this be a quick short-term correction bought by the bulls, or could this be another turn for the worse?

The last major denial for Bitcoin was $ 14,000. The drop from $ 12,400 will technically be the lower high – a key feature of a downtrend.

Black Thursday stops setting lower levels as Bitcoin’s best boon to save from a fall into another bear market, but things may not be as optimistic as market sentiment allows.

However, the first bulls must lose support at $ 11,400. Critical resistance levels dated back to November 2017 and were the last to be broken before the cryptocurrency set a record at $ 20,000.

After the last week of January 2018, Bitcoin never closed a weekly candle above this level again, demonstrating the level of resistance was too strong – until recently. Just a few weeks ago, Bitcoin broke through the critical level and closed many of the above weekly candles.

But now it may be time to go back to retest various old resistance levels as support, starting at $ 11,400 – currently underway.

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BTCUSD Weekly Support Test In Progress | Source: TradingView

Retesting of weekly support, if lost, could cause Bitcoin to drop to retest both diagonal downtrend resistance turned support and horizontal support at $ 10,250. This support zone could be an ideal place to buy bearish if the current weekly support fails.

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BTCUSD 12-Hour Ichimoku | Source: TradingView

Along with the weekly support, on the BTCUSD 12-hour chart, the cryptocurrency is also trying to find support on top of the Ichimoku cloud. However, the removal of a technical indicator also suggests a potential head and shoulders pattern is nearing completion.

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BTCUSD Daily Head And Shoulders | Source: TradingView

The head and shoulder formation is usually a reversal pattern that appears at the top of a rally like things turn heads. Completion of the chart pattern has a target that would match a retest of the resistance of the previous downtrend to confirm it as support.

If Bitcoin can hold there, any further drops in price will be unlikely, and that could be the last correction before the bull market starts.

You can see the Bitcoin price here.

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