4hr
Whats up Crytpo lovers!
BTC RSI touched 30, which historically doesn't happen very often. Our recent lows of 6k, and 6.5k actually were a little lower on the RSI to about 26. This means we could still make it to our support trend line. The fact that we were bought up before hitting our very publicized support trendline may be showing us some strength left in Bitcoin, and greedy whales not wanting to share in bottom buying fun.
In some other cryptos the inverse head and shoulder pattern is more clearly defined, have a quick look at ETH for example. Also, it is important to know that Head and Shoulder patterns do not need to be one left shoulder one head and one right shoulder. They are a psychological output: a level that has been tested multiple times and multiple attempts at breaking through. (Google: Bulkowski Complex Head and Shoulder.)
As I mentioned in my post from April 29th, I still hold onto my 'Belief' that BTC won't get below 7k on this recent bear leg: but that is simply what I feel and should not be acted upon. A good trade set up would be the break of the Inverse H&S taking us to a measured move and subsequently where our last support/now resistance had been at 8000, which happens to be a nice round number. (Of course, make sure we break this longer term trendline resistance that started on 5/5.) Take profits at 8k, let the dust settle and see if we have enough gas to make it to 8300, which has had a very high volume signature recently so we can expect that to hold true on the way back up as well as a decent pivot line. After that target has reached I expect it to Drop, Chop and maybe even Roll. It could work itself higher to 8500 which is also the 50% Retracement but beyond that point I would be very careful about having longs in as we approach past 8500 up until the resistance trendline. I am actually still bearish overall for this market for the mid term and would suggest not entering long unless we clearly break this triangle resistance.
Stay on your Toes!
Whats up Crytpo lovers!
BTC RSI touched 30, which historically doesn't happen very often. Our recent lows of 6k, and 6.5k actually were a little lower on the RSI to about 26. This means we could still make it to our support trend line. The fact that we were bought up before hitting our very publicized support trendline may be showing us some strength left in Bitcoin, and greedy whales not wanting to share in bottom buying fun.
In some other cryptos the inverse head and shoulder pattern is more clearly defined, have a quick look at ETH for example. Also, it is important to know that Head and Shoulder patterns do not need to be one left shoulder one head and one right shoulder. They are a psychological output: a level that has been tested multiple times and multiple attempts at breaking through. (Google: Bulkowski Complex Head and Shoulder.)
As I mentioned in my post from April 29th, I still hold onto my 'Belief' that BTC won't get below 7k on this recent bear leg: but that is simply what I feel and should not be acted upon. A good trade set up would be the break of the Inverse H&S taking us to a measured move and subsequently where our last support/now resistance had been at 8000, which happens to be a nice round number. (Of course, make sure we break this longer term trendline resistance that started on 5/5.) Take profits at 8k, let the dust settle and see if we have enough gas to make it to 8300, which has had a very high volume signature recently so we can expect that to hold true on the way back up as well as a decent pivot line. After that target has reached I expect it to Drop, Chop and maybe even Roll. It could work itself higher to 8500 which is also the 50% Retracement but beyond that point I would be very careful about having longs in as we approach past 8500 up until the resistance trendline. I am actually still bearish overall for this market for the mid term and would suggest not entering long unless we clearly break this triangle resistance.
Stay on your Toes!