Bitcoin $BTCUSD has been recovering since the mid-September plunge from almost 5000 to tag 3000. Last week, I noted that if BTCUSD does not clear 4400, there is a likelihood of another bearish correction swing. Some noted 4500 as a barrier. This week, price action stalled just above 4400 and has since completed a head and shoulders pattern. BTCUSD 1H Chart(click to enlarge)Price Top:- BTCUSD retreated after hitting 4450. - Note that the "head" of the large head and shoulders pattern was also a H&S pattern.- This fractal nature reinforces the price top possibility. Downside:- Now, I think the downside will be limited because the volatility before and after the China-news in September was HUGE.- Naturally, markets has cycles of relatively high and relatively low volatility. - I believe the volatility will die down a bit first before increasing again.- Therefore, I don't think price will actually fall back to 3000. - Instead we should anticipate support around 3500. - We do have to monitor the daily candles to make sure they are indeed getting smaller and smaller to confirm the assumption of short-term volatility normalization.BTCUSD Daily Chart(click to enlarge)