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BTC/USD sell signal: the bearish head and shoulder pattern indicates a potential drop for Bitcoin

By: Invezz

December 29, 2023 at 07:44 AM EST

BTC/USD trading strategy

Buy/sell asset: Sell BTC/USD
Entry price: $43,195
Stop loss: $43,975
Leverage: 1x
Take profit 1: $42,300
Take profit 2: $41,600
Take profit 3: $40,700
Timeframe: 1 week
Maximum profit: 6%
Maximum loss: 1.8%

BTC/USD chart and technical analysis

Bitcoin is making lower lows and is in a down-trend after the price made a high higher at $44,400 last week. The price is likely to continue the bearish trend and drop further after the formation of a bearish head and shoulder pattern.

The head and shoulder(H&S) pattern is an important pattern that indicates the continuation and reversal of a trend. The current H&S pattern in a downtrend indicates a further drop for Bitcoin.

I am expecting the price will slightly retrace further to the $43,195 resistance level from where it will likely drop to the $40,700 support level.

Bitcoin fundamental analysis

The price of BTC/USD is likely to remain stable for the next few days as there are no major fundamental events that can impact the price of Bitcoin substantially.

Bitcoin to US dollar trade idea takeaways

The formation of head and shoulder pattern indicates a further drop in the price of BTC/USD
Bitcoin is likely to drop to the $40,700 support level.
Multiple take-profit levels have been added to secure profit along the way.
The risk-to-reward ratio on this trade is 1:3.3.
The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
Good luck!

The post BTC/USD sell signal: the bearish head and shoulder pattern indicates a potential drop for Bitcoin appeared first on Invezz

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