Bitcoin Bears Looking for A break Below 8,310
Bitcoin price continues its bullish ride as it trades comfortably above the 13k level. This is even more spectacularly as the USD strengthened against its main rival – gold.
Also, the general strength seen in the USD across financial markets meant nothing so far for Bitcoin. Is the Bitcoin price decoupling from the USD here to stay? If yes, the cryptocurrency bullish trend should continue.
However, on its way to the upside, Bitcoin may be in the incipient phases of a head and shoulders pattern. Moreover, we may even talk about a pattern within a pattern, should the lower degree pattern come to fruition.
The news responsible for most of the gains in Bitcoin price from the $10,000 came from PayPal. By announcing that it will allow crypto payments on the platform, PayPal spurred a rally in Bitcoin and other cryptocurrencies it will work with.
This is important news because over 60% of smartphone owners have the PayPal app installed on their smartphone. The same survey reveals that over 15% of PayPal users intent to use crypto for payments in the next twelve months.
Summing up the numbers and the crypto payments using the PayPal platform could easily reach $50 billion in one year from now. The big question right now is if the news is already priced in at current levels? Or the rally continues?
Bears have something to consider – a possible head and shoulders pattern that may belong to a “pattern within pattern” concept. On a break below the neckline (i.e., the horizontal black line on the chart below), bears would want to sell at $12,700 and place a stop at $13,750. For the target, bears may consider the $11,200 area, one that acted as resistance on the way up. If the price does that, the bigger degree head and shoulders pattern points to even more weakness.
