BTC had a meteoric rise in price at the beginning of 2021. In fact, it was so parabolic, it was enough to shut the buttcoiners up for an entire year. Entering 2022, however, the tracks might experience a harsh reversal in direction as volume begins to settle down, and BTC gets shorted left and right. This article presents, on the weekly chart, two bearish signs to be aware of.
Double Top
Starting with the most mature, telling bearish sign expressing itself in the charts is the Double Top sign. Generally speaking, a double top signifies the reversal of a longstanding trend, and is most of the time a reliable indicator of the trajectory of the price.
In the case of Bitcoin, this sign began its formation back in January of 2021, and has bounced off of the support level on June. The next time the price meets with the support level is the time it comes into full maturation.
Head & Shoulders Pattern
This, however, is not the only major bearish sign there is. At the second top, a head & shoulders pattern has clearly formed itself, with both shoulders resting on the same neckline of that top in particular. A head & shoulders pattern is significant in this case, as the entirety of this pattern has formed without any volatility in the volume underlying it, which is in itself is an alarming sign.
Receding Volume
Then there's the problem of declining volume throughout both of these tops. This is, as mentioned before, particularly significant because the left shoulder of the Head & Shoulders pattern usually operates on an explosion of volume, whilst the right shoulder generally demonstrates lower volume than the left shoulder. This is not the case right now with Bitcoin, as the entire pattern saw a stable flow of volume through it all, which is quite troubling.
Investing Accordingly...
All in all, a price prediction of mine would be that Bitcoin, after breaking the neckline, might drop down to $30K, which is the price point where the major support level resides.
If this support level is breached, however, then freefall would stall at $17900 somewhere at the end of February.
However, if the H&S pattern is rejected, which I highly doubt, then we might see a massive appreciation up to the territory of the $90-100K.
With these two major bearish signs present, complicated by worrisome levels of volume on the latter half of the bull run, I've opted to pull out %75 of my BTC into USDT. If one of these signs was present on its own in this chart, it'd be hard to ignore, but two is as stark of a telling of where the price is going to head in February as a thousand suns in the sky. Good luck!