Hello everyone,
Since our last post, we've seen a drop to our support trend-line.
What we have on the chart today is a little different. We've observed a possible H&S pattern in the making, similar to the inverse H&S below. Per our observation, IF we manage to break below the neckline (in purple), we might be looking at a drop to around the $6,800 level, as we mentioned in the update in our last post.
The volume profile on the right, confirms the possibility of a drop to that level IF we end up breaking down; as there is little volume traded in that area.
Otherwise, the H&S would be technically invalidated if we manage to break the $8,500 (head) and previous high.
Keep in mind, this theory has not played out yet, so we must watch the price action carefully from here on. We've only observed similar H&S patterns from our previous drops (from $10k) and rallies (from $5.7k), and have incorporated that thought into a possible repetitive pattern here.
In other news, ICE (owner of the NYSE) has just announced a start up they've been working on, which will be the first US regulated BTC market! Per their expectations, this could happen as soon as November. Be aware of the effect this *might* have on the market, as it seems many important approvals are anticipated in the upcoming months.
Give us a follow for more updates, and check out our previous posts for more BTC analyses.
Thank you for reading!
Since our last post, we've seen a drop to our support trend-line.
What we have on the chart today is a little different. We've observed a possible H&S pattern in the making, similar to the inverse H&S below. Per our observation, IF we manage to break below the neckline (in purple), we might be looking at a drop to around the $6,800 level, as we mentioned in the update in our last post.
The volume profile on the right, confirms the possibility of a drop to that level IF we end up breaking down; as there is little volume traded in that area.
Otherwise, the H&S would be technically invalidated if we manage to break the $8,500 (head) and previous high.
Keep in mind, this theory has not played out yet, so we must watch the price action carefully from here on. We've only observed similar H&S patterns from our previous drops (from $10k) and rallies (from $5.7k), and have incorporated that thought into a possible repetitive pattern here.
In other news, ICE (owner of the NYSE) has just announced a start up they've been working on, which will be the first US regulated BTC market! Per their expectations, this could happen as soon as November. Be aware of the effect this *might* have on the market, as it seems many important approvals are anticipated in the upcoming months.
Give us a follow for more updates, and check out our previous posts for more BTC analyses.
Thank you for reading!
Comment:
It seems that we're forming a bear flag now.
We thought a re-test of the 1200 EMA (in our previous post) was typical of BTC's movement, but this time it seems the movements are more and more direct with less sideways movement.