A day before, the asset had earlier printed a “Darth Maul Candle” which saw BTC rising by a percent in a few minutes to nosedive by 3 percent in 3 mins, then sustain its downtrend flunking around its support.
Analysts who had observed the crypto asset’s movement with keen eyes noted three phases in its downward trend, first on Saturday in which it fell from its previous high of $9,200 to $8,900, then it was dealt a second blow which saw it plummet from $8,900 to $8,700 in the early hours of Sunday. The biggest blow it suffered saw it tumbling from $8,700 to trade beneath $8,400 liquidating a total of $92 million BitMEX contracts.
BTC’s Next Move: Ranging or Downtrend?
A renowned trader, Big Cheds sees BTC finding support at $8,400 as in three futile attempts over the last few weeks, it had met resistance at the $8,400 level.
On the technical analysis chart, the head and shoulders formation occurs when a market trend is in a reversal process from either a bull or bear trend, which is characterized by a baseline with three peaks, the outer two are close in height, and the average is the largest.