Bitcoin's scary-looking chart pattern is breaking down in a way that has historically been good news for buyers.

• The head and shoulders pattern that traders fear has failed, since Bitcoin is still above its 200-day average.
• The crashes people remember — 2018, COVID, 2022 — all had Bitcoin below that line first.
• In the six past cases where the pattern failed like this, Bitcoin gained about 7.5% within a month.
• That is far better than a typical month, which averages closer to 2%.
• The fuel comes from trapped short sellers, who have to buy back in as the price rises against them.

Outlook: If the pattern keeps failing, the squeeze on short sellers should push Bitcoin higher over the next month.

## Bitcoin Levels

• **Bias:** Bullish
• **Support:** The 200-day moving average, reclaimed when Bitcoin crossed $69,200 on 18 August
• **Invalidation:** A break back below the 200-day moving average