Watch H&S in BTC

With a bearish start to the week for Bitcoin the question ahead is whether we will see another rangin week above $40,000 or a break below this technically and psychologically important level. Bitcoin’s head and shoulder pattern is in the process of forming making a near term base above $40,000 possible. As seen in the above daily chart, Bitcoin trades far below the EMA 20 which means the trend is very bearish. However, RSI shows that the downwards trend is exhausting. Still, if Bitcoin breaks below this support level, it should trigger a huge sell-off because of the Head and Shoulder pattern break. Bitcoin has support at $34,000, fib 1.272 and resistance at $52,000, fib 0.618.