Bitcoin stole the crypto spotlight after surpassing the $30,000 mark on Monday, October 16. Market observers attributed this spike to rumors suggesting the United States Securities and Exchange Commission (SEC) had greenlit BlackRock’s Spot Bitcoin ETF.
While the recent price action appears to have led to the formation of a bearish technical pattern on Bitcoin’s daily chart, BlackRock CEO Larry Fink said it is an example of “pent-up interest in crypto.”
Bearish Picture After Bitcoin ETF Rumors
Renowned technical analyst Crypto Capo discerned a pattern on Bitcoin’s daily chart, known as the “head-and-shoulders.” This particular formation, easily identifiable with three peaks where the central peak (the “head”) rises higher than the flanking peaks (the “shoulders”), often signals at a potential market reversal.
Bitcoin’s recent spike to over $30,000 appears to have formed the right shoulder of this technical pattern. Therefore, a potential breach of the $25,000 support level could result in a 20% correction, dragging Bitcoin’s value down to around $20,000 or lower.
“No changes. $19,000-$20,000 should be next. Then $12,000,” the trading veteran said.
Read more: How to Short Bitcoin: A Step-by-Step Guide
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Author: Bary Rahma
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