Bitcoin has encountered turbulence in the past few days.
The benchmark was largely consolidated in the region below $ 11,000 after the cryptocurrency was severely rejected at $ 12,000 last weekend.
But yesterday the bulls tried to spark a new leg higher. They sent BTC to $ 11,500 before losing momentum. From here, it returned to the $ 11,000 support level.
This latest price action resulted in the formation of a bearish "head and shoulders" pattern that could be seen when looking at the 4-hour chart of the cryptocurrency.
This technical model has historically been in a downward trend and will require a large flow of fresh purchase pressure to be overridden.
However, while looking at Bitcoin's Fibonacci levels, it is still a strong possibility that BTC's targeting the next $ 13,000.
An analyst explained that for this to happen, it may first have to retest important support at $ 10,500.
Bitcoin Forms Bear Technical Structure as Momentum Slownesses
At the time of writing, Bitcoin is trading at just under 1% at its current price of $ 11,170.
BTC has been trading around this level in the past few hours and its recent refusal is $ 11,500.
The strength of the cryptocurrency has been slightly decreasing recently due to the denial series it has released.
The first rejection of $ 12,000 took place this Saturday, and all subsequent initiatives moving towards this level were met with heavy selling pressure.
This resulted in a bearish "head and shoulders" pattern that was clearly visible when looking at the 4-hour chart.
An analyst spoke about this one last tweet"4h BTC H&S is evolving," he said, presenting a chart showing his technical formation.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
If Bitcoin goes below the neckline of this model, which is around $ 11,000, the cryptocurrency can begin to reverse its recent gains.
Here's the Road to BTC to Take Another "Moon Mission" to $ 13,000
Despite the appearance of this downward technical pattern, an analyst said in a close tweet that he believed that the cryptocurrency could still be in a good position to climb higher.
Looking at Bitcoin's Fibonacci levels, the trader explains Retesting the 0.786 level – $ 10,500 – could lead to a buying pressure rage that catalyzes the movement for $ 13,000.
“Do you want to retest 0.786 (10.5k) to 13k before the lunar mission?
Image Courtesy of Teddy. Chart via TradingView.
The trend of cryptocurrencies in the coming hours will provide important information about its outlook in the near term.
Featured image from Unsplash. Charts from TradingView.