BINANCE: BTCUSDT - Head&Shoulder Pattern and A Long Term Look

Since the beginning of December, the pair BTCUSDT has been forming a head&shoulder pattern. Now it is trading at the critical support at $13000. Yesterday, the bears tried to break below the $13000 support-also the bullish trendline forming since 18/12 but could not succeed. This is marked by a bearish candle with very long tail - #hammer pattern, which indicates buying strength.

If the price holds above this support level, it is likely to trading inside the range. Otherwise, if it breaks below and closes below $13000, it may fall to the $8000 level because of the following reasons:

• it’s the prior resistance since the bull run at 13/11
  it’s the 78.6% fibonacci retracement level
  and it’s also the up trendline forming since 18/9
  

If this happens, the pair may hold at the minor support at $10800 level, which is the 61.8% fibonacci level and also the 50-day SMA. At present, our best choice is to stay out of the market as there are too many scenarios. A Long position is initiated only on a break and close above $17000.