DrDovetail

The dread and shoulders has a big descending wedge within it

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
One potential upside to mention is that the "dread and shoulders" pattern has within it a very sizeable descending wedge which basically consists of both the head and the right shoulder....descending wedges tend to break towards the upside....so if we see a bullish breakout with lots of bull momentum to go with it and a bullish volume spike and then a double close above the descending wedge on the 4 hour chart then that would be a great scenario causing me to switch from neutral where I'm currently at to long. We just saw a huge bullish spike from 7500 to 8000 which is a great sign that we will be breaking out of the descending wedge instead of breaking down under the head and shoulders ...but keep in mind this too could be a fake breakout so tread lightly and wait for those confirmation candles and bullish spikes in volume before assuming we have a valid descending wedge breakout. Great analysts like Haejin Lee have been noticing a descending wedge which is a fractal of a previous larger descending wedge and at least right now it's currently looking like that is correct. Always anticipate a false breakout and set your stop losses accordingly though to protect yourself.
Comment: if we do have a successful breakout above the descending wedge the target price jump is right around 9600.
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