BTC: Possible inverted H&S in the making

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
BTC likes those head and shoulder patterns. Because traders like this pattern, especially the inverted head and shoulder type.

However, we should remember how often this pattern has failed in the past months. So many times, there was an inverted H&S structure in the making, and many times, it failed. It looked as if it would burst through the neckline, just to fail in the last minute, and dump.

We are finally approaching the interesting levels that I have been mentioning since weeks and weeks now.

1. The lower logarithmic downtrend resistance connecting the ATH and the 6500 level where the last big dump started.
2. The higher logarithmic downtrend resistance connecting the multiple smaller tops since early 2018, with the 6500 area. This is the stronger of the two.
3. At the area of the upper downtrend resistance (around 4900USD right now, in 1-2 weeks at 4700-4800USD), we also have the upper weekly BBand and the daily MA200.
4. The number of daily transactions is still far away from ATH: https://www.blockchain.com/de/charts/n-t...

Therefore, if the inverted H&S fails, it will bounce off the lower resistance, the low will therefore also be lower, around 1800 USD.

If the inverted H&S succeeds, we might see a nice rally to the upper resistance, as high as 4800 USD. But this resistance is ultra strong, and BTC is very overbought on weekly, volume still low, no capitulation has yet occured.
Still too many weak hands in BTC , and too many people claiming 3200 has been the bottom. No despair yet! Also, the number of transactions, which I consider one of the strongest metrics for BTC , is still far away from ATH .

All this leads me to believe, that in the best case, BTC reaches 4800, then dumps down to 2400 USD. I see these two scenarios unfold in the coming weeks.

I see almost no chance (of course the chance is not 0%, but still quite low) for BTC going through both resistances, as sorry as I am.

After that final shakeout, we should see a very strong weekly volume bar. Then the low could be confirmed and finally real reversal can start to happen.
The momet of truth comes nearer and nearer :) Good luck!

btc to 6k...then to where ever it goes... dont bet against trend
You've literally drawn a H&S where you want one, ignoring all rules
@qfina, I don't really want one, hehe.
@seba26-77, thanks for sharing.
Thanks for the alternative view on the current price action. Wouldn't the indicators on the chart below be enough to justify accumulating already?

FlaviusTodorius67 InvestingScope
@InvestingScope, Hi, thanks for Sharing. Yes, normally I would agree with your View. However, I am a proponent of the theory that Bitcoins cycles are slowing down. I think the Speed has to decrease over time, like a pendulum that acquires more Mass. Of course, this is just a theory so I could be wrong. Other indicators I use are the longterm squareroot trendline that has not been touched yet. Normally, it is always touched. Also, the number of daily transactions need to increase more. That is just my view and a theory :)
am I correct in thinking that the 2400 trendline the one connecting late 2013 top to the China ban dip in 2017?
@MustStopMurad, Yes, that's right. It also coincides with the longterm squareroot function Support.
nice chart .. but imo the target of the inverted h&s should be around 5100 $ closing the gap from November crash ...the breakout target usually is equal to the dictance form the head(bottom) to the neckline which is around 800$ ..so adding 800 $ to neckline around 4200$ gives the target 5k $
+1 Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out