Bitcoin has experienced some turmoil in the past few days.
After the benchmark cryptocurrency was rejected last weekend at $ 12,000, it has largely consolidated in the region with less than $ 11,000.
Yesterday, however, bulls tried to ignite a fresh leg higher. They sent BTC to a high of $ 11,500 before losing momentum. From here, it returned to its $ 11,000 support level.
This recent price movement has led to the formation of a bearish "head and shoulders" pattern, which can be seen by looking at the 4-hour cryptocurrency chart.
This technical pattern is historically bearish and requires a massive influx of new buying pressure to become invalid.
Aside from considering Bitcoin's Fibonacci values, it's still very likely that BTC will target $ 13,000 next.
An analyst said that he may need to retest his key support at $ 10,500 before this can happen.
Bitcoin forms a declining technical structure as momentum slows down
At the time of writing, Bitcoin is trading at just under 1% at its current price of $ 11,170.
BTC has been trading at this level in the past few hours. The recent $ 11,500 rejection has led BTC into another consolidation phase that is directly above the short-term key level.
The strength of the cryptocurrency has deteriorated slightly lately due to the series of denials it has published.
The first rejection at $ 12,000 occurred last Saturday, and all subsequent attempts to move to that level faced strong selling pressure.
This has led to the formation of a bearish "head and shoulders pattern", which can be clearly seen when you look at the 4-hour diagram.
An analyst spoke about it in a new tweetand said that a "4h BTC H&S developed" while offering a chart with the technical formation.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
If Bitcoin breaks below the cutout of this pattern, which is around $ 11,000, the cryptocurrency could begin to reverse its recent gains.
Here's the way forward for BTC to see another "moon mission" at $ 13,000
Despite the appearance of this bearish technical pattern, an analyst recently tweeted that he believes the cryptocurrency could still be well positioned to move higher.
While pointing to Bitcoin's Fibonacci levels, the trader is explained that retesting its 0.786 level at $ 10,500 could trigger a rage of buying pressure that catalyzes a move to $ 13,000.
"Repeat test of 0.786 (10.5 km) before the moon mission on 13 km?"
Image Courtesy of Teddy. Chart via TradingView.
How crypto trends are likely to give significant insight into their short-term prospects in the coming hours.
Featured image from Unsplash. Charts from TradingView.