BTCUSD Faces Downward as the Formation of the Head and Shoulders Pattern Ends

The bullish trend was again resumed with a greater impulse as the price skyrocketed upward. However, the rally only drove the price into consolidation as the price formed the Head and Shoulders Pattern. The neckline of the Head and Shoulders Pattern is likely to be broken as the price begins the new downtrend.

BTCUSD finally gets set to decline to the downside. Owing to the exuberant expansion of the price to the upside in March 2023, a correction phase emerged. Before the exuberant expansion of price to the upside in March 2023, BTCUSD has always been dominated by the bulls since December 2022. From the trading range bounded by the $19569.0 and the $15460.0 major levels, the price broke out aggressively as the year 2023 began. The bears barely got a significant opportunity until BTCUSD was priced at $25289.0.

BTC Key Levels

Demand Levels: $25289.0, $19569.0, $15460.0
Supply Levels: $31050.0, $37401.0, $48240.0

What Are the Indicators Saying?

Prior to the formation of the Head and Shoulders chart pattern, the market was bullish, as indicated by the SMA (Simple Moving Average). However, the SMA (Simple Moving Average) is currently above price, which indicates that a bearish trend is looming. Similarly, the Moving Average Convergence Divergence shows that the downtrend had begun as it crossed the zero line downward.

Learn from market wizards: Books to take your trading to the next level

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Fat Prophets

• 

  James Cummings

• 

  ActivTrades

• 

  IQ Option