Bitcoin’s price declined to a low of $45,673 while on-chain data points toward a substantial drag down to $40,000.
On Monday, Bitcoin’s short-term outlook started to worsen after its price dropped at $45,673, far from the weekend’s promising comeback beyond the $50,000 level.
With the year almost finished and all-time highs near 35% away, traders are trying to readjust their expectations while driving the $100,000 BTC target into 2022.
Day traders and over-leveraged longs seem to freak out.
The daily timeframe clearly shows that the price struggled to leave the trend of daily lower highs. Besides the drop to $42,000, traders seem to be anxious to buy the most current dips.
Tracking moving averages is simple to swing trade BTC. Some traders like to buy when an asset confirms a few daily closes beyond the 20-MA and sell when the price drops below it. They do it because they see it as a sign that the short-term trend is becoming weaker.
After this, traders might need to wait for Bitcoin to ensure a daily close beyond the moving average at $54,000 before it opens new long positions.
Experienced traders understand that Bitcoin’s price tends to make M-tops, double tops, and several other patterns after beating new all-time highs. Lately, analysts pointed to a double top, representing a clear trend reversal pattern.
Looking at the daily time frame, traders can easily see the start of a head and shoulders pattern. The recent dips and consolidations might finally complete the shoulder, with a neckline at $41,600.
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