Bitcoin is making lower lows and is in a down-trend after the price made a high higher at $44,400 last week. The price is likely to continue the bearish trend and drop further after the formation of a bearish head and shoulder pattern.

The head and shoulder(H&S) pattern is an important pattern that indicates the continuation and reversal of a trend. The current H&S pattern in a downtrend indicates a further drop for Bitcoin.

I am expecting the price will slightly retrace further to the $43,195 resistance level from where it will likely drop to the $40,700 support level.

The price of BTC/USD is likely to remain stable for the next few days as there are no major fundamental events that can impact the price of Bitcoin substantially.

• The formation of head and shoulder pattern indicates a further drop in the price of BTC/USD
• Bitcoin is likely to drop to the $40,700 support level.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:3.3.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

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