Bitcoin Sell-Off Triggers Classic Bearish Reversal Pattern; $20K Next?

A handful of concerning factors, plus AAVE’s correlation with the Nasdaq, increases the possibility of the altcoin undergoing another massive sell-off. Technical analysis suggests that a recent uptrend in the price of Aave (AAVE) is showing signs of exhaustion based on early development of a classic bearish reversal pattern.Is AAVE headed to $70?Dubbed a "rising wedge," the pattern surfaces when the price rises inside a range defined by two ascending, converging trendlines. As it happens, the trading volume declines, pointing to a lack of conviction among traders when additional buying is....

The classic bearish setup projects Litecoin price potentially falling to $200 in the coming sessions. A 37% November price rally in Litecoin (LTC) risks exhaustion as the "silver cryptocurrency" hints at forming a Double Top chart pattern.The classic bearish reversal setup appears when the price forms two consecutive peaks of almost the same height, with each upside move meeting with a strong correction towards a common support level, called the "neckline." Typically, the price breaks below the support and falls by as much as the maximum height between the Double Top's peak and neckline.So....

Crypto and stock traders view the inverse head-and-shoulders pattern as an early signal that a bullish trend reversal is in the making. Every trader aims to buy low and sell high, but only a few are able to muster the courage to go against the herd and purchase when the downtrend reverses direction. When prices are falling, the sentiment is negative and fear is at extreme levels, but it's at times like these that the inverse head and shoulders (IHS) pattern can appear.The (IHS) pattern is similar in construction to the regular H&S top pattern, but the formation is inverted. On completion,....

The latest trend in the Bitcoin taker buy-sell ratio could suggest a bearish reversal may be coming soon for the cryptocurrency. Bitcoin Taker Buy Sell Ratio 100-Day EMA Has Encountered Resistance An analyst in a CryptoQuant Quicktake post explained that the asset may be heading towards a correction due to the taker buy-sell ratio coming across strong resistance. The “taker buy sell ratio” is an indicator that keeps track of the ratio between the Bitcoin taker buy and taker sell volumes. When the value of this metric is greater than 1, it means that the taker buy or the long....

Bitcoin price has formed a head and shoulders pattern on its short-term time frame and is currently testing the neckline. Bitcoin Price Key Highlights. Bitcoin price has recently broken down from a long-term consolidation pattern, signaling an increase in selling pressure. A head and shoulders pattern can be seen on the 1-hour time frame and this is a classic selloff signal. Price is still above the neckline of the reversal formation, though, so it’s still early to confirm if further declines are in order. Technical Indicators Signals. The 100 SMA crossed below the 200 SMA recently, which....