Bitcoin Bull Move on Hold as Downside Risks Grow

Bitcoin traded largely sideways over the last 24 hours, though a dip soon before press time may threaten a developing bullish chart pattern if the price moves below $6,000.

BTC's drop below 10-day moving average on Tuesday neutralized the immediate bullish outlook and shifted risk in favor of a sell-off to $6,000.

Clearly, the risk of a drop below $6,000 has increased substantially in the last few hours.

It is worth noting that the probability of BTC price charting a bullish inverse head-and-shoulders pattern would drop sharply if the cryptocurrency finds acceptance below $6,000.

The major moving averages are trending south and are located one below the other, signaling the path of least resistance is to the downside.

The RSI is hovering below 50.00 but is holding well above the oversold region, which means there is plenty room for a drop towards $5,755.

The inverse head-and-shoulders pattern comprises three successive troughs, the middle trough being the lowest and the two outside troughs being low and "Roughly equal".

BTC needs to create the right shoulder in the range of $6,000-$6,100, i.e. bulls need to defend the support at $6,000 and stage a solid rebound, else the dream of a picture-perfect inverse head-and-shoulders pattern will remain elusive.

View Bitcoin risks falling below $6,000 in the next 24 hours and could extend the decline towards the recent low of $5,755, the hourly chart indicates.

Acceptance below $6,000 would kill the odds of BTC price charting an inverse head-and-shoulders bullish reversal pattern.