How many times have you head-and-shoulders (H&S) pattern that is treated as a harbinger of future price losses? The Twitterverse is rampant with charts that depict this bearish formation. However, according to market analyst Ronnie Moas, this pattern has popped up so frequently that it's now almost insignificant for the price of Bitcoin.
Choose your pattern (and narrative)
The H&S pattern is one of the most popular bearish setups that consists of three peaks that, as the name suggests, resemble a head and two shoulders. Traders deem it as a useful tool for spotting bullish-to-bearish trend reversals.
This baleful price pattern was recently spotted by none other than famed Bitcoin critic Peter Schiff who predicted that the price of BTC could collapse to just $1,000 once the formation gets completed.
Bitcoin might be also forming an inverse H&S that usually means a bullish reversal (it all depends on your timeframe and narrative).
Where is Bitcoin heading next?
However, as of now, there seems to be some sort of consensus among traders that Bitcoin might soon drop below the $7,000. The leading cryptocurrency has failed to break out of the six-month falling channel on multiple occasions for the past few weeks. The long-lasting period of range-bound trading might could mean another big price drop for BTC.
Where will the Bitcoin price end up on Dec. 31? Share your thoughs in the comments!
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