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After Bitcoin’s “barn-storming” run from $8000 to almost $14000 in just two weeks we’re now seeing signs that we may be running out of steam.

The chart highlights 3 patterns. Number 1 and 2 are both ascending triangles which are continuation patterns i.e. they suggest that the market will continue its upward trend. Number 3, however is a head-and-shoulders which is a reversal pattern i.e. it suggests a change in trend. All these patterns have played out perfectly as per the textbook!

$11400 and $13400 were identified as areas of potential resistance on the way up and proved to be good profit-taking levels. Now that we have broken down out of the head-and-shoulders we have bounced up and are looking to test the neckline which should now act as resistance. As such I expect a move to the downside from current levels back to $11400.

We’ll have to then reassess from there, but for now bear is the most likely short term outcome in my opinion. Having said that we are still in a strong bull market overall, so having taken profit off the table I’m looking for the next bullish setup to enter long!

Kratika is Global Crypto's Admin Assistant. She has extensive experience working for top tech firms from around the world, and has a wealth of knowledge in the FinTech industry.