Chart of the Day - Friday, March 22, 2024

🏆 Today’s Chart of the Day was shared by Matt Weller (@MWellerFX).

• Bitcoin has pulled back -13% over the past 10 days from a record high of $73k to $63k.

• Matt points out that Bitcoin has spent the entire month forming a potential Head & Shoulders top. Breaking the neckline at $61k would open the door to -18% downside to $50k in the coming days/weeks.

• On a more optimistic note, it will be very bullish if this bearish pattern fails. For example, the ongoing rally in $NVDA began as a failed Head & Shoulders top in October.

The takeaway: Bitcoin has formed a potential Head & Shoulders top over the past three weeks. Breaking the neckline at $61k would imply a downside target near $50k. On the other hand, if this pattern fails, it could spark a sharp reaction higher.