As we predicted, bitcoin (btc/usd) was going to face a key resistance around $8400. We also anticipated price to come down and test the $8000 area as support. Indeed, after price tagged $8400 it stalled and then fell to $8000, where is has since been whipping around. BTC/USD 4H Chart (click to enlarge) Neckline: The 4H chart shows that price is essentially forming a head and shoulders pattern under $8400, with a neckline around $7920. A break below $7900 therefore could send price down towards the $7335-$7525 area, which is a support/resistance pivot area. This is going to be likely a wide sticky area, instead of a specific support pivot. I would expect price to consolidate here, and think we should wait until price action shows us what the key support/resistance will be. I would be surprised if price comes down to $7200 before finding support.But if price does not find support at $7200, I would not rely on support until $6450-$6500 area. And even then, I would only anticipate a short-term bounce and would want to monitor the reaction here further before determining if price will likely bottom of fall further. At this point, things look bearish for bitcoin in the short to medium term. BUT if price manages to hold above $7900 and pushes above $8200 (around where the shoulders area), then the pressure will be back at the $8400-$8420 area. From CoinPowR