On Feb. 26 Cointelegraph contributor Scott Melker tweeted the above chart and said:
“Is everyone talking about this yet?”
If the inverse head and shoulders pattern Melker mentions were the complete the right shoulder, Bitcoin price could drop as low as $7,400. Hence the desire by bulls that Bitcoin price holds above the 200-DMA.
If the price breaks below the moving average and falls below the support at $8,500, traders will look for a bounce at the 61.8 Fibonacci retracement level ($7,991). Failure to bounce in the golden pocket would increase the likelihood of the inverse head and shoulders pattern completing.