On the daily chart below for BTCUSD, we can see that the huge rally since the Silicon Valley Bank collapse has stalled at the $30K level, which is a key resistance from June 2021. The price is struggling to make new highs and this consolidation looks like a head and shoulders pattern right at a key resistance.

The neckline in this case would be at the 26900 level and a break below should lead to 22900 as a measured target. We can also see that the entire rally since the SVB collapse has been diverging with the MACD. This is a sign of weakening momentum often followed by pullbacks or reversals.

BTCUSD technical analysis

On the 4 hour chart below, we can see that the market was also trading in a symmetrical triangle and as we expected last week, the price rejected the top of the triangle and after breaking out of the rising channel started to fall towards the bottom of the pattern. The big development is that the price has also broken out of the triangle hinting at a possible start of a downtrend. Yesterday we saw a little flash crash right into the neckline at 26900, but the price rebounded soon after and started to range.

On the 1 hour chart below, we can see more closely the little range created just above the neckline. There’s not much to glean from this chart, so the traders should just wait for a breakout on either side of the range and go with the flow. A break above should lead to a rally towards the top of the triangle, while a break below should lead to a major selloff towards the 22900 target.