Bitcoin price today blasted above $11,000, reviving bullish sentiment across the crypto market. Behind the buzz, is the fact that the leading crypto asset successfully confirmed a bullish retest of $10,000 as resistance turned support.
But at the same time, the future of finance may have also completed a bearish retest and throwback to confirm a bearish reversal pattern. Both directions cant be right, so which is it? You be the judge.
Bitcoin Price Performance: A Head And Shoulders Above The Rest
Throughout most of 2020, Bitcoin and altcoins have been soaring together. But over the last 24 hours, something strange has happened, and the leading cryptocurrency has outperformed alts by a significant variance.
BTC dominance is breaking out of a downtrend line after potentially holding above a key support level and is showing signs of bottoming on high timeframes. If thats the case, altcoins could be in trouble.
But although Bitcoin is currently looking bullish, rising more than $1,000 from local lows and a critical retest of support turned resistance, price action may have slammed into a brick wall.
BTCUSD Daily Head and Shoulders Chart Pattern & Throwback | Source: TradingView
The potential top pattern – a head and shoulders – that sent Bitcoin price back down to retest $10,000, just had its neckline retested. Thus far, although $11,000 has been holding, the neckline also hasnt been penetrated and a rejection could be forming.
Head and shoulders patterns, according to expert Thomas Bulkowski, often experience a throwback to the neckline to keep trading interesting. A head and ...