Possible pullback on BTC before resuming the Uptrend
On 15 October, Bitcoin (BTC) surged above its previous high, confirming its uptrend on the 2-hour chart. The cryptocurrency is now trading above the 200-period Simple Moving Average, with the potential to reach an all-time high in the coming months.
However, shortly after surpassing its previous high, BTC formed a Head and Shoulders pattern on the 2-hour chart, indicating a possible short-term pullback. Currently, BTC appears to be breaking the neckline of this pattern, suggesting a potential decline in price over the next few days.
A bearish pullback could see BTC decline to the 64,300 region, aligning with the 50% Fibonacci retracement level of the recent upward movement. This area is expected to provide support, allowing BTC the opportunity to resume its upward trajectory.
Technical Summary:
A steady uptrend is evident on the 2-hour chart.
Breaking above the previous high signifies a potential continuation of buying momentum in the upcoming months.
The Head and Shoulders pattern on the 2-hour chart indicates a possible bearish pullback in the short term.
An important support zone at 64,300 could serve as a foundation for resuming the uptrend.
Given these considerations, a buying opportunity may arise if BTC retraces to a range between 64,300 and 65,300 in the coming days. Traders should look for confirmation through bullish patterns, such as a Pin Bar or an Engulfing pattern on the 2-hour timeframe.
It is also essential to note that upcoming US elections could significantly impact BTC's price. If Donald Trump wins, his inclination towards promoting Bitcoin may further influence market dynamics.
Preparing for Potential Market Movements
In summary, while BTC shows strong upward momentum, the formation of the Head and Shoulders pattern indicates that traders should remain cautious of a possible pullback. Monitoring key support levels and upcoming economic events will be vital for making informed trading decisions in the evolving market landscape.
Disclaimer:
74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance is not necessarily indicative of future results. The value of investments may fall as well as rise and the investor may not get back the amount initially invested. This content is not intended for nor applicable to residents of the UK.
However, shortly after surpassing its previous high, BTC formed a Head and Shoulders pattern on the 2-hour chart, indicating a possible short-term pullback. Currently, BTC appears to be breaking the neckline of this pattern, suggesting a potential decline in price over the next few days.
A bearish pullback could see BTC decline to the 64,300 region, aligning with the 50% Fibonacci retracement level of the recent upward movement. This area is expected to provide support, allowing BTC the opportunity to resume its upward trajectory.
Technical Summary:
A steady uptrend is evident on the 2-hour chart.
Breaking above the previous high signifies a potential continuation of buying momentum in the upcoming months.
The Head and Shoulders pattern on the 2-hour chart indicates a possible bearish pullback in the short term.
An important support zone at 64,300 could serve as a foundation for resuming the uptrend.
Given these considerations, a buying opportunity may arise if BTC retraces to a range between 64,300 and 65,300 in the coming days. Traders should look for confirmation through bullish patterns, such as a Pin Bar or an Engulfing pattern on the 2-hour timeframe.
It is also essential to note that upcoming US elections could significantly impact BTC's price. If Donald Trump wins, his inclination towards promoting Bitcoin may further influence market dynamics.
Preparing for Potential Market Movements
In summary, while BTC shows strong upward momentum, the formation of the Head and Shoulders pattern indicates that traders should remain cautious of a possible pullback. Monitoring key support levels and upcoming economic events will be vital for making informed trading decisions in the evolving market landscape.
Disclaimer:
74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance is not necessarily indicative of future results. The value of investments may fall as well as rise and the investor may not get back the amount initially invested. This content is not intended for nor applicable to residents of the UK.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.