Bitcoin price has held strong, confirming both former resistance levels as support and also confirmed largest reversal pattern
It seems that at the moment, the $ 10,000 level is seen as the most important support for Bitcoin. Bitcoin price so far has held firm, confirming both old resistance levels as support. But at the same time, BTC may also have confirmed the largest reversal pattern in its entire history.
BTCUSD Weekly Inverse Head and Shoulders Confirmed Throwback | Source: TradingView
Bitcoin price just confirmed its biggest reversal chart template
As Bitcoin plunged straight into $ 20,000 and instantly dropped more than $ 8,000 to $ 12,000 a day later, it became clear that there was a reversal in progress. The bearish peak has yet to be retested and thus so far marks the most critical confirmed reversal left on Bitcoin’s price chart with a full 40% movement in a top-down pattern.
Almost a year later, Bitcoin then collapsed to its current bear market bottom at $ 3,200 and consolidated for months, forming another pattern of reversal. The ascending triangle at the low four-year assets had a full height of just 30%, however, caused the cryptocurrency to rise more than 300% from the low point of the pattern.
Although these two reversal patterns are the most important in the current bear and bull cycle, they are pale in size compared to the potential inverse head and shoulders pattern that forms on the frame. Weekly time on the BTCUSD price chart.
Bitcoin price action since its peak in 2019 has formed a large inverse head and shoulder chart pattern. These structures are often bullish reversal patterns, representing a battle between the buyer and the seller, with the seller ultimately losing money.
The significance of the reversal pattern is not only the fact that it could cause Bitcoin to go higher from here but also the sheer size of the formation itself.
Past reversal patterns took place within just 30-40% of price action, while the full rise from the candle close on the “head” of the pattern is over a 95% move. Matching that move, from the breakout point, would take the cryptocurrency back to retest its former all-time high as a target.
Head and shoulders patterns, whether inverse or right side up, often result in a throwback back to retest the trend line as resistance flipped support or vice versa. After that retest is confirmed, the next stop is the target based on the structure.
The target pattern is taken from the trend line to the low point of the head. Any more crashes caused by Black Thursday will bring the structure’s target beyond the record price of cryptocurrencies.
Could this giant pattern be the final reversal pattern before Bitcoin breaks above its all-time high? Please wait for it!
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