In the early hours of the morning, Bitcoin exploded upward to $8,000 from a double-bottom local low set over the weekend around $7,500. The rally upset overly bearish crypto investors and traders who had been expecting further downside in the price of the first ever cryptocurrency.
The brief, yet powerful green candle may have shocked bears, an ominous and massive head and shoulders has been forming on the price charts of Bitcoin and other leading crypto assets, suggesting that the bears may soon have their party, and the crypto market may see a sharp drop lower if the formation is completed and confirms.
Bears in Disbelief: Bitcoin Rallies From Local Low in Surprise Move
Oftentimes, the best move for investors is to take a contrarian stance from the rest of the market. Much like calls for million-dollar BTC were signals the last bull market top was in, calls for sub-$1,000 Bitcoin was equally exuberant.
Related Reading | Peter Brandt Bearish After Bitcoin Breaks Bullish Trend, Expects Further Reversal
But it’s when the majority of the market is expecting it to trend in a specific direction, more often than not the market moves in the opposite direction.
when bears get cocky and my feed is 80% filled with 6k calls things like this happen.$btc pic.twitter.com/l8UiVc4MID
— ??BenjaminBlunts?? (@SmartContracter) June 10, 2019
After over 100% growth in just two months and a broken parabolic rally, the entire crypto market is anticipating a significant drop in Bitcoin – with many calling for targets of $6,000 and lower.
Nice 6% pump by $BTC
Sentiment was a little too bearish after that weekly close
Even I expected further downside
Range remains the same and would like to see a daily close above $8200 pic.twitter.com/z4HONOT4HJ
— Josh Rager ? (@Josh_Rager) June 10, 2019
The overly bearish expectations come after last night’s weekly candle close, which many claim is a bearish reversal signal painted on weekly price charts.
The calls for $6,000 were quite preemptive as Bitcoin hasn’t yet broken below $7,400. In fact, a poll posted just moments before the sudden surge heavily skewed toward $7,200 over $8,000 as Bitcoin’s next target. The votes have since evened out as the poll is still live, and not even an hour after the poll was posted, Bitcoin had already touched $8,000.
Staring in the Eyes of Massive Crypto Market Head and Shoulders Formation
Bitcoin bulls may have bested the bears once again, if a massive head and shoulders that is forming on the price charts of Bitcoin and other major cryptocurrencies plays out, bears will soon be having a parade at the expensive of the bulls.
So NOW we gettin a head and shoulders…. pic.twitter.com/G9DkWxNHG7
— dave the wave (@davthewave) June 10, 2019
The powerful bearish reversal pattern began at the start of May when Bitcoin breached resistance at $6,000. A quick rise to around $8,200 happened, before the leading crypto by market flashed crashed forming the left shoulder.
pic.twitter.com/ahm0XixgcO
— Peter Brandt (@PeterLBrandt) June 9, 2019
The surprisingly resilient crypto asset, then bounced back to over $9,100 before a violent rejection put the entire two-month rally in jeopardy.
$BTC Daily Chart.
Heading, no pun intended, into the right shoulder of the Head and Shoulders pattern should happen soon. After that, all bets are off. Could still take a week or so to develop. Expecting choppy higher prices this week. Proceed with caution.#BTC pic.twitter.com/9Z7lZoRhtP
— CryptoFibonacci (@CryptoFib) June 10, 2019
After falling to local lows below $7,500, Bitcoin has now revisited above $8,000 twice, signaling that the bulls are still putting up a fight – however, a break above $8,200 is required for the enormous reversal pattern to be invalidated.
Featured image from Shutterstock