Bitcoin has formed a series of lower highs in 2018, as shown on the chart. Joining all the lower highs forms a bearish descending triangle pattern, that will complete on a breakdown and close below $5,900.
Another bearish pattern that is setting up is the head and shoulders, which will also complete on a breakdown below $5,900. So, the key level to watch on the downside is the support zone of $5,900โ$6,075, which has held on four previous occasions this year.
If the bulls hold the support zone, the BTC/USD pair will make another attempt to form a higher high and start a new uptrend. The first sign of strength will be a break out above the downtrend line of the triangle and the right shoulder. The failure of a bearish pattern is a bullish sign. The bullish trend will further be confirmed on a rally above $8,500.
On the other hand, if the bears sustain below the $5,900 level, a drop to $5,450 and thereafter to $5,000-4800 is possible. Lets wait and see
