tells<\/a> his 512,000 YouTube subscribers that Bitcoin is likely to undergo a steep correction if it fails to break above the range it has been trading in for about six months now.<\/p>\n\u201cIf we are going to really kick off a new bull market there are key things that Bitcoin needs to do.<\/i><\/p>\n
From this point on here [around $28,000], Bitcoin needs to get past this channel between $28,000 to $32,000, the price range of prior support in the last bull market that potentially is serving as resistance right now. At least it\u2019s been playing like that since back in April\u2026<\/i><\/p>\n
If we come up here to $31,000 again, like we did back in April, like we did in June and July and we don\u2019t have the follow-through to get up and set new relative highs and clear through this resistance at $32,500, then we are likely going to roll back down.\u201d<\/i><\/p>\n
According to Merten, the heads and shoulders pattern depicted on Bitcoin\u2019s weekly chart (above) is indicating an incoming bearish reversal. A head and shoulders pattern is characterized by three peaks with the middle peak being the \u201chead\u201d and the two outer peaks being the \u201cshoulders.\u201d<\/p>\n
\u201cIf you have an inverse head and shoulders on lows then that can be a bullish reversal to the upside. But this is a typical head and shoulders pattern. If we face resistance here [at just below $32,000] and we break below the channel [around $25,000], that would be a pretty clear short opportunity in my opinion.\u201d<\/i><\/p>\n
Bitcoin is worth $27,598 at time of writing.<\/p>\n