(!) Bitcoin 2x Inverse Head & Shoulders ((1)55% profit potent.)
People have been wish-ful-thinkingly seeing a very early inverse H&S on Bitcoin for some time now, but that very inverse head & shoulders really seems to be forming that last shoulder. Given the difference between the left shoulder and the head being around $4K, and the neckline around $11,5K – this would give us a target of $15,5K for this inverse H&S.
Note that if you want to trade this inverse H&S and want to do it by the book, you wait until break-out confirmation above neckline 1. Alternative entry points are when price bounces back after that initial break-out, but those are more complex and require more patience. Volume might also be massive when such a break-out occurs, so who knows BTC doesn’t even go for a retesting of that neckline (but I think it will).
So that’s our inverse head & shoulder number 1 – with target at around $15,5K which also coincides with the 23,6% Fibonacci retracement level.
The potential party isn’t over yet however – if you look at the chart, you will see a second left shoulder, the head, and if price would be bouncing around somewhat between neckline 1 and target 1, we have a right shoulder as well. In that case, we’re not speaking about 55% profit potential anymore, but $23-24K for Bitcoin or more than double the price now. We would have to wait to beyond May however for that to occur. But who knows, maybe mid-March we’re already at $15K, and you’d probably be glad already ;)
So, what do you think?! ;-)
Note that if you want to trade this inverse H&S and want to do it by the book, you wait until break-out confirmation above neckline 1. Alternative entry points are when price bounces back after that initial break-out, but those are more complex and require more patience. Volume might also be massive when such a break-out occurs, so who knows BTC doesn’t even go for a retesting of that neckline (but I think it will).
So that’s our inverse head & shoulder number 1 – with target at around $15,5K which also coincides with the 23,6% Fibonacci retracement level.
The potential party isn’t over yet however – if you look at the chart, you will see a second left shoulder, the head, and if price would be bouncing around somewhat between neckline 1 and target 1, we have a right shoulder as well. In that case, we’re not speaking about 55% profit potential anymore, but $23-24K for Bitcoin or more than double the price now. We would have to wait to beyond May however for that to occur. But who knows, maybe mid-March we’re already at $15K, and you’d probably be glad already ;)
So, what do you think?! ;-)
Comment:
And there we go again ---> Heikin Ashi reversal candle on the chart, followed by a nice big fat green upward candle
Comment:
& if we zoom in on the 4-hourly, we see Bitcoin going for that resistance again. MACD in favour of the bulls
Comment:
Guys, just want to point out three things:
In my other post on "recognising trend reversals in Bitcoin", following this link:
- I explained how you can spot trend reversals in Bitcoin.
I also want to get your attention on that one again, as:
1) you could have called the bottom again after the analysis in that post (i.e. when I called a top in "2", simply by looking at the forming of the next doji (in "3").
2) You can see how the dojis told us there was a trend reversal pending in "1" and in "2"
3) we are only seeing nice green candles for the moment, so no doji yet ;-) that is good news, but stay attentive!
(note again that we are talking Heikin Ashi candle sticks, not regular candle sticks)!
In my other post on "recognising trend reversals in Bitcoin", following this link:
- I explained how you can spot trend reversals in Bitcoin.
I also want to get your attention on that one again, as:
1) you could have called the bottom again after the analysis in that post (i.e. when I called a top in "2", simply by looking at the forming of the next doji (in "3").
2) You can see how the dojis told us there was a trend reversal pending in "1" and in "2"
3) we are only seeing nice green candles for the moment, so no doji yet ;-) that is good news, but stay attentive!
(note again that we are talking Heikin Ashi candle sticks, not regular candle sticks)!
