Bitcoin blood bath may not be over just yet: BTC/USD forms bearish pattern
- Another potential breakout to the downside, as price forms bearish structure.
- Major downside target still eyed at a big weekly support level, seen at $3050.
Bitcoin price late on Wednesday, was seen nursing minor losses of just over 1% in the session. Enjoying some short-term stability within its current consolidation mode. However, an extended move to the downside could be around the corner.
BTC/USD price action over the past going on two sessions, has formed a bearish pennant structure, which is very much vulnerable to an extended move to the downside. The formation came as the price consolidated, following the heavy selling pressure most recently from 19th November.
Technically, as mentioned, given the current price structure, it does stack favorably in the bears court. Near-term support should be noted at $4292, the lower trend line of the pennant. Resistance seen just ahead at $4529. The next major bearish target level would be $3050, key weekly support and September 2017 low.
BTC/USD 60-minute chart
Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
