🔥 Bitcoin Bearish Scenario: Head & Shoulders

With Bitcoin trading bearish, and investors fearing a bear market, it's time to explore some more bearish ideas on price action for the upcoming months. Be aware that my long-term view is still bullish, but a glance at the other side can never hurt.

First of all, my personal worst case scenario would be sell-off towards the $40k-$42k area. I'd be very surprised if this area would not cause a major bounce. A likely scenario in that case would be for BTC to bounce and trade bullish for the first part of 2022.

However, the first shoulder area between $50k-$53k will be a significant resistance area where BTC has to break through. It's possible that BTC will fail here and reject this area. By then we can safely assume that we're trading in a head & shoulders pattern and that more downside (~$30k) is in the cards.

Happy trading!