This is a daily technical analysis of Coindesk analyst and chartered market technician Omkar Godbole.
Bitcoin’s
Wider views are constructive, but its short -term prospects remain bleak, according to technical analysis.
The leading cryptocurrency by market value has jumped back to nearly $ 104,000 from its $ 104.30 overnight stay along with positive actions in the US stock futures.
However, a closer look at the hourly price diagram reveals that jumping is probably a classic collapse and gene test-play-cryptocurrency pigeon out of a head-and-shoulder pattern on Thursday signalizing a short-lived bullish-to-bearish trend change, and prices are now repeating the breakdown point, called neck cut.
This happens because the early sellers – those who shortened at the time of the collapse – are quick to make profits, in accordance with the view theory of behavioral analysis.
This leads to a jump that usually runs into fresh sales at the neckline of those who missed the preliminary collapse. These fresh shorts lead to the next leg lower.
In other words, BTC is not yet out of the woods and prices can be lower from about $ 104,000, which is expanding the withdrawal. The immediate support is $ 100,000, followed by $ 95,500. The latter has reached by drawing the height of the H&S pattern from the breakdown point.
On the higher side, a step over $ 107,000 is needed to invalid the bearish setup and shift focus to detect heights.
