Bitcoin price recently collapsed from $12,400 to under $10,000 after the cryptocurrency presented a near-perfect distribution pattern.
If the pattern continues, the market could form a massive head and shoulders top, with a price target of significantly lower.
Distribution Pattern Costs Crypto Investors An Arm And A Leg
Bitcoin price over the last several weeks had formed what by comparison appeared to be a clear distribution pattern. After the $2,000 plunge last week, that pattern may have been confirmed, now that the first-ever cryptocurrency is trading at around $10,000.
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Rather than embarking on this massive bull run, crypto investors are licking their wounds after a surprise move that was telegraphed in advance by the ominous Wyckoff distribution pattern.
On higher timeframes using Renko charts, however, the pattern still has another phase to go, before mark down begins.
BTCUSD Renko Distribution Head and Shoulders Chart | Source: TradingView
Bitcoin Head and Shoulders Points To Another Leg Down
According to the chart above, if the current level fails to hold,