Bitcoin has faced some turbulence throughout the past couple of days.
Following the benchmark cryptocurrency’s firm rejection at $12,000 this past weekend, it has largely been consolidating within the lower-$11,000 region.
This recent price action has resulted in the formation of a bearish “head and shoulders” pattern that can be seen while looking towards the cryptocurrency’s 4-hour chart.
This technical pattern is historically bearish, and it will require a massive influx of fresh buying pressure for it to be invalidated.
One analyst explained that it might first need to retest its crucial support at $10,500 before this can take place.
Bitcoin Forms Bearish Technical Structure as Momentum Slows
At the time of writing, Bitcoin is trading down just under 1% at its current price of $11,170.
BTC has been trading around this level throughout the past several hours, with its recent rejection at $11,500 throwing it into yet another consolidation phase right above its key near-term support level.
The cryptocurrency’s strength has been degrading slightly as of late due to the series of rejections it has posted.
The first rejection at $12,000 came about this past Saturday, and all subsequent attempts to rally up towards this level have been met with heavy selling pressure.
This has culminated in the formation of a bearish “head and shoulders” pattern that can be seen clearly while looking towards its 4-hour chart.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
Here’s the Path Forward for BTC to See Another “Moon Mission” to $13,000
“Retest of 0.786 ( 10.5k ) before moon mission to 13k?”
Image Courtesy of Teddy. Chart via TradingView.
How the crypto trends in the coming hours will likely provide significant insight into its near-term outlook.
Featured image from Unsplash. Charts from TradingView.