The Coming Weeks Could Be Crunch Time For Bitcoin

Bitcoin BTC/USD still holds its No. 1 spot as the highest market cap cryptocurrency. Below Bitcoin sits Ethereum ETH/USD as the second-highest market cap in the crypto market.

Bitcoin looks to be nearing key levels and the coming weeks could be an important time when Bitcoin could see a major move in either direction depending on where it starts trending.

Bitcoin was down 2.11% at $37,656.10 at last check Thursday afternoon.

Bitcoin Daily Chart Analysis:

• Bitcoin is trading in a channel between two previous key support and resistance levels, and longer-term is potentially forming into a head and shoulders pattern.
• The crypto is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the crypto is likely bearish.
• Each of these moving averages may hold as an area of resistance in the future.

Key Levels To Watch:

• Bitcoin is trading in a channel between the price levels of $30,000 and $40,000 and a break of one of these levels could push the crypto further in the direction of the break.
• The $40,000 level has previously held as resistance in the past multiple times, while the $30,000 level has held as support multiple times in the past, these levels may also hold in the future.
• Bitcoin also looks to be forming into a head and shoulders pattern (orange), this pattern is a bearish reversal pattern and Bitcoin may see a strong downward push if this pattern is able to complete.

What’s Next?

Bullish technical traders would like to see higher lows and break over the $40,000 resistance. A break above resistance with a period of consolidation above the level may hint Bitcoin might be ready for another leg upwards.

Bearish technical traders would like to see Bitcoin fall below the $30,000 level. If Bitcoin is able to hold the $30,000 level as resistance after it falls below the level, it may be ready to see another push down. Bears would also like to see the crypto form into the head and shoulders pattern and see a strong downwards reversal happen.

(Photo: André François McKenzie via Unsplash)