Yesterday, crypto bulls began celebrating as Bitcoin poked its head above resistance at $12,000 momentarily, before pulling back ahead of the first daily close of the new month.
The failure to set a new high, coinciding with some bearish technical signals and underlying market factors, may have prompted the selloff. But how low will this correction go? Is this another opportunity to buy the dip, or is this a more extensive reversal?
Bitcoin Price Forms Head And Shoulders After Today’s 6% Correction, Targets Retest of $10,000
Bitcoin price has been on a slow and steady uptrend most of 2020. The only discrepancy was the Black Thursday collapse in mid-March that took down stocks, crypto, metals, and more.
All signs are pointing to the crypto asset’s next bull trend beginning, but key resistance levels remain. With $10,000 now a thing of the past, the primary resistance lies above $12,000, and above there, $13,800 where the June 2019 top took place.
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After several attempts, Bitcoin may have made its last try to hold above $12,000 for some time, given the severity of today’s $750 drop and the formation of an ominous top pattern.
In addition to diving over 6% already from last night’s daily close, less than 12 hours later it has put the cryptocurrency at risk for confirming a head and