Double head and shoulder, decline to 0.5 fib / parabolic advance
We have now seen a sharp move in the direction which indicates a correct or change in direction.
After a yearly high at 9100 we have seen a decline to 7600. This change of direction we saw the 30th of May which also turned out to be a possible head of a big head and shoulder formation. This is yet to be confirmed however there are several things that indicate that this could happen.
- At the 7600 level another smaller H&S is forming, which would also be the right shoulder of the bigger H&S. Both of the possible H&S that I see would be confirmed in the same (blue box) area.
- The MACD is showing divergence not only on 4h timeframe but also on the Daily.
- Usually before a big move we see very low volume. The volume is currently close to be as low as when the big move up started in the end of April
So if all this plays out, where will BTC be heading in the coming weeks. I think it is very likely that we get a decline all the way down to the fibonacci level 0.5. This is a very common retracement level for BTC from the previous years. Some people argue that we are currently in a parabolic advance. If that is the case then we might not go all the way to 0.5.
Lets see if the H&S will complete and we get further down side but wait for confirmation.
After a yearly high at 9100 we have seen a decline to 7600. This change of direction we saw the 30th of May which also turned out to be a possible head of a big head and shoulder formation. This is yet to be confirmed however there are several things that indicate that this could happen.
- At the 7600 level another smaller H&S is forming, which would also be the right shoulder of the bigger H&S. Both of the possible H&S that I see would be confirmed in the same (blue box) area.
- The MACD is showing divergence not only on 4h timeframe but also on the Daily.
- Usually before a big move we see very low volume. The volume is currently close to be as low as when the big move up started in the end of April
So if all this plays out, where will BTC be heading in the coming weeks. I think it is very likely that we get a decline all the way down to the fibonacci level 0.5. This is a very common retracement level for BTC from the previous years. Some people argue that we are currently in a parabolic advance. If that is the case then we might not go all the way to 0.5.
Lets see if the H&S will complete and we get further down side but wait for confirmation.