Sive-Morten

Waiting for right arm of H&S pattern

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Morning guys,

By our view, the H&S pattern that is forming here, on 4H chart should provide clarity on further direction. As market has turned to upside action,
we adjust the neckline and make it sloped a bit.

Now market is forming upside AB-CD action, which target coincides with 5/8 Fib resistance level . This Agreement could become the top of right arm. Although we do not care much where top will be - either at OP target or slightly higher, with harmony with left arm. We're mostly interested in what will happen right at top. H&S failure means action to 6500 while, validity means drop to 4600 area and completion of daily "222" Sell pattern.

It means that if you want to go short - best area is the top of the right arm. It doesn't guarantee success, but it provides best entry point with minimal potential loss and best risk/reward ratio.
For bulls - it would be better to wait clarity with H&S , particular speaking - its failure. Otherwise, taking long position while H&S is still forming is rather risky and could be expensive journey.
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