DutchyFX

Short/medium term bearish BTC prediction

Short
BINANCE:BTCUSD   Bitcoin

This is a very basic price prediction of a possible short/medium term bearish scenario via a 200 EMA rejection/H&S playout. Hope you find some value :)


If BTC can climb back up to the 42k USD/200 EMA level completing the right shoulder of this large head and shoulders pattern, my bias will stay neutral until we either break above and find basic support on the EMA, confirming the bull run is still active (Bullish scenario) or we could see something like what I've broken down in this analysis, which is if we see a rejection from the 200 EMA/42k area I believe we are likely to see an aggressive and sharp decline down to the 24k USD - 20k USD level. (Bearish scenario) (Break of the H&S neckline)

After this dump we would then likely see a consolidation/accumulation period around this level, followed by a swift pump to the upside shortly after breaking back above the 200 EMA, but potentially finding resistance around the 42k USD/40k USD level again.

Price would then drop down from the found resistance at this level catching the last of the bears on the wrong side of the market and completing the right shoulder of a potential inverse H&S pattern, bitcoin would then find support on the 200 EMA line potentially around 37k USD, this would confirm the breakout to the upside giving the bulls the momentum needed to target the ATH by the end of the year which would set the crypto asset up for a monstrous 2022.
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