Inverse H&S looking primed and ready, the ultimate BTC analysis
In this analysis we will look at the price change, formations, momentum based indicators and support/resistance levels.
What does this all mean!
RSI Regular bearish divergence, not a very strong one but could mean a short move downfirst. These have a good percentage probability to play out.
Inverse head and shoulders pattern complete, with volume confirmation. Need to wait for a neckline break before continuation upwards before it is tradable.
SQZMOM indicator: Positive momentum is now starting to open up, lining up with a potential break and run of momentum.
Ascending triangle where the right shoulder is, generally bullish but with the strong resistance overhead- in crypto we can get a fakeout and reversal on no break of the upper area.
Declining volume confirms potential trend change.
Conclusion!
I personally think there will be a breakout to the upside, after a small move down back to the trend-line first. A bullish RSI divergence on the next trend-line touch would be perfect.
The declining volume is a great indication along with a reversal pattern, especially with the strong downtrend before it- makes it more likely to reach the higher targets.
Inverse H&S has a 74% chance to reach the maximum target after formation, study done over 5000ish formations of it.
If it falls out the downside of the triangle with good volume, I expect it to reach the 6k range, due to a trend-line with the lower low and higher low we have had. (I forgot to chart it on woops)
I will be trading the neckline break if it comes.
Watch out for pesky resistance levels on the way up. 74% IS NOT 100%. Don't get rekt.
Thank you for reading, I hope you all feel informed! Xander.
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