Is the original crypto about to reverse course?
I am examining the Head and Shoulders pattern that appeared during the one-hour period.
BTC/USD might decline by the same amount as the pattern if it breaks below its "neckline" on the chart. This entails a visit to the $23K or $22K psychological levels in this instance.
Naturally, how prices move in the future will depend on how the market feels for the remainder of the week.
As local regulators intervene to reduce depositor fears, all eyes will be on European and American banks.
Then there is today's policy announcement from the European Central Bank (ECB). More traders will factor in a less hawkish tightening plan from the Fed if ECB President Lagarde and her team sound less pessimistic than they did last week.
BTC/USD may rebound from its present levels to retest its $25K or $26K highs if risk appetite returns.
However, if risk-takers are still scared off by contagion fears, BTC/USD may break below the Head and Shoulders neckline and retest important levels like $22.5K or $21.5K.
How do you feel? Is the rise in BTC/USD from below $20K a bull trap? Or are we witnessing the beginning of a more prolonged reversal?
