We recently discussed how bitcoin (BTC/USD) looked like it was going to remain in the correction/consolidation phase. As we wrap up the year, price action is looking even more bearish for the short-term (next week or 2).
BTC/USD 4H Chart
- Price action reflects the "mood" of the market.
- At the moment, a head and shoulders type of mood is in the market.
- It's a more "civilized" type of correction as oppose to much sharper reversals.
- Note that as the market rounds out the second shoulder, we see another H&S type of price action.
- This type of price action reaffirms the anxiousness of new buyers who are not long-term holders and are more likely jump right back out.
- In this kind of environment, we can anticipate further depreciation in price towards the 10K mark.