Going into this week, tensions and uncertainty is high in the USA. This may cause a scare in global markets. After looking more into BTCUSD, I found this similarity from the last BULL cycle.
While looking at the charts, we can conclude a Head & Shoulders pattern is evident (red pattern). This pattern looks identical while comparing it to June 2019 to Now. The only difference being the timeframes.
On to the MAs. As shown on the MA 100 (yellow line), it provided support for the uptrend in both scenarios. Once that was broken in June 2019, the market fell hard, directly landing on its MA 200. Looking at the MA 50 (blue line), we can see that after it was broken on both charts, the price retreated back to test it, then confirming it as a now a resistance. At the time of writing, BTCUSD is currently experiencing the EXACT SAME rejections.
Now on to the RSI (bottom). Shown with red circles, we can see 3 similar tops on both charts. These tops are labeled 1-3. The first top (1), coincides with the top of the left shoulder on both charts. The second top (2), coincides with the top of the head on both charts. The third top (3), coincides with the top of the right shoulder on both charts.
After viewing these similarities, It is not of the question to see the drop under 30k not many of us are expecting.
This red line has been respected for 4 years. As seen in the past, it took a while to get over it, once that happened it came back and confirmed the breakout and thats when BTC went super parabolic. We are currently experiencing rejection at the Red line $40,000 range. As of now we are experiencing the same rejection on that line that was seen in June 2019 (left chart).
This is shorter description as I wanted to get this out quickly as the market was dropping as I was making it.
I hope you all enjoy!
Please COMMENT & LIKE!
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BTC is TESTING its top breakout line!!!!
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New look. Bears wont back down. Pattern still in tact.
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If 35K breaks and it becomes resistance, we can see major volatility downwards.
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Pattern has played near exact as of now. 35K resistance as of now. 33k next support if we break again. Slow and Steady sell off! Hope everyone is shorting!
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Hello All!
Here is it! Pattern played out perfectly. BTC is down $5000 since the idea was posted.
Once 30k gets taken out, BIG red.
Lesson Ive learned the last years that made me 99% confident in this. EVERYONE WAS SO BULLISH! Thats when BTC tanks ! When everyone is BEARISH, thats when BTC pumps!