Bitcoin is about to go under again

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Though I don't usually like to guess what type of pattern is turning out, it seems that there is a clear head and shoulder building across all exchanges. If this H&S proves legit, we might be looking at a target of 200 USD once we break the 220 support (and we will). This should happen somewhere in the next 24 to 48 hours.

Of course, this mini crash will be followed by a mini rebound, just to continue the downtrend a couple of hours later.

** I strongly suggest that you never try to guess a pattern. One should always act upon a proven pattern, i.e one that has already broken out. This way you have less profit, but you minimize risk by a huge factor. **
looks like the race to 200 has begun, later than expected probably due to all those bulls in denial.
You can also spot a H&S going the opposite direction in the same place. Given that the primary trend is down right now, that would be the one to watch, not the one that has a preceding upward trend of a few hours.
moker-X MoonTrader
The head and shoulder is actually showing that the latest "rally"(rebound, or however we can call it) is coming to its top. A H&S is a typical reversal pattern, whether on very short term, mid-term, or long term charts.

The inversed H&S you are reffering to is actually invalid as it has two left shoulders, and two right shoulders.
MoonTrader moker-X
They're more reliable the longer the preceding trend and on larger time scales.
moker-X MoonTrader
that, I do agree with you. thats why I also noted that this was just "guessing". One should never trade on what he thinks is going to happen, but what is actually happening or has just happened.
moker-X MoonTrader
you were right, inversed H&S is proven valid. Little bull trap in the making, after that more down
+1 Reply
MoonTrader moker-X
Yep :) You're probably right, though. It's probably not going to shoot over $300 again just yet.
nobr3ga MoonTrader
If proven valid the H&S (with the breakout only + volume), those should be the targets to look for in the short-term:

- First target being at 245ish (neckline from the previous H&S, were we usually get to return for a quick bounce after any breakout, to straight after give us the big move down).

- Second target at 250ish (the bottom part line of the major descending triangle that we have been seeing all along the longer time-frames, and likewise, after a breakout, the price tends to come back for a quick bounce, before heading its way to complete the pattern.

As an alternative scenario, from the lows of JAN-14' 2015 to the top of this last H&S that I speak above, if we draw a Fibonacci Retracement line, it gets even more interesting to find that the price is actually pulling-back exactly from its 61,8%.

It’s certainly an Interesting thought, though.
so far this looks like the behavior of a head and shoulder. The neckline is situated at 231, if we break it than the H&S is confirmed. So breaking 230 should be a nice entry for a short position.
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