- Summary:
- Bitcoin price under pressure as a head and shoulders pattern forms. The $10,000 level plays a crucial role and now provides support.
Bitcoin price has a hard time letting the $10,000 level go. On the one hand, the level provided tough resistance on the bounce from the March slump. On the other hand, once broken, resistance turned into support.
But the interchangeability of support and resistance for such a long time (i.e., five months) created a consolidation area that looks like a head and shoulders pattern. The right shoulder seems to be incomplete, but it would not be the first time when the right shoulder in such a pattern will take less time to consolidate than the left shoulder. In other words, a break below the $10,000 may simply mean the end of the pattern, despite the difference between the two shoulders.
Visa Doesn’t Give Up on Its Crypto Strategy
The payment giant has a dedicated crypto and blockchain department that investigates opportunities in the space and how to integrate crypto and blockchain into the company’s operations. The recent association with Coinbase and the withdrawal from the Libra association just shows that Visa remains flexible and willing to stay up-to-date with all the changes taking place in the Fintech world.
As Bitcoin represents a new form of money, companies like Visa, as well as central banks, explore opportunities in the space. It tells us that embracing Bitcoin and crypto goes beyond simply buying and holding a coin.
Bitcoin Price Technical Analysis
The technical perspective on Bitcoin looks bearish. To the extent that the price drops below the $10,000 level, the measured move points to a target below the $8000. Also, the blue line reflects the resistance/support interchangeability at the psychological $10,000 level perfectly.
Bears would want to wait for the price to reach $9,800 before going short, targeting $7,500 and having a stop-loss order at $11,500. While not a great risk-reward ratio, it does make sense to tighten the stop loss order as soon as possible after the entry.
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Bitcoin Price Forecast
