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Bitcoin Might be in Bearish Continuation

Bitcoin has been consolidating in the past week or so, rallying from 442 to 534. When we look at the daily chart, we can see a market that has been bearish in Q1, then rallied in Q2. After consolidating in a descending triangle from June to August, we saw a break below the triangle mid-August. Since then, the outlook has been bearish with downside risk to the 340 low on the year.

(bitcoin daily chart 8/28)

Price action in the last couple of weeks could be described as an inverted head and shoulder, or just price bottom attempt. Today, it looks like this attempt may have failed.

- Price is falling and is now below the 200-, 100-, and 50-period SMAs in the 4H chart.
- Price is breaking below a very short-term rising trendline.
- The RSI held below 60 for the most part after tagging below 20, showing maintenance of the bearish momentum.

It looks like bitcoin is poised to test the 487 support pivot, which was the right head of the inverted head and shoulders attempt. A break below 485 would completely take away the inverted H&S scenario, and confirm a signal for bearish continuation that has the 442 low, the 420 low from May, then the 340 low on the year in sight.

(Bitcoin 4H chart 8/28)