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Bitcoin Technical Analysis – Bearish Shark Spotted

BTC/USD traded with a bullish bias over the $4,000 level. Bitcoin is currently trading lower, but dips are likely to find a strong buying interest near $3,970 or $3,940.

On the hourly timeframe, the leading crypto pair has formed a harmonic pattern called Bearish Shark. It’s a bearish pattern in nature and typically triggers a sell-off in the market. The pattern has completed C to D wave around $4,100 which is now extending a solid resistance. However, the 200 periods moving average prevails around $4040, signaling a bullish bias.

BTC/USD – Hourly Chart

Looking at the chart, Bitcoin price has settled nicely in an uptrend above the $3,970 and $3,960 support levels. Any further drops may push the price back in a bearish zone towards the $3,920 support.

The immediate support is near the $3,940 level, which worked as a major resistance level earlier. Overall, the current technical outlook is positive and there are chances of more gains if BTC breaks above $4,100.

Support Resistance
3977.46 4037.04
3945.29 4064.45
3885.71 4124.03
Key Trading Level: 4004.87

The Stochastic is holding below 50, indicating a bearish bias of traders. So, here’s a thing. BTC/USD is likely to trade bearish below $4,100 with a target of around $3,970 or $3,940. The bullish entries should be preferred on the breakout of $4,100.

All the best!

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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