Hey all:
Well since my last analysis, the falling wedge did indeed break upward, and has continued upward with momentum. I suspect that this will hit major overhead resistance at around 4400, which coincides with previous resistance/support in 2017 plus the falling 50 EMA. This presents a good opportunity for a pullback and allows me to pencil in the head and shoulders formation. Even the head is kind of wonky, the neckline could be quite obvious at this line of resistance. For you Elliott Wave fans, you can also imagine that we could be on Wave 1 of a new bull impulse wave with the right shoulder mirroring a wave 2 retrace and the beginning of a wave 3, before breaking out of the head and shoulder pattern. The target of the inverse H&S pattern is the height of the head to neckline, which puts us right at a retest of the major overhead resistance of 5800-5900. We touched this level back in February, June and August before breaking down from the descending triangle. This will be a major battle here, and unless we break above that level, the bears are still in full control and we could continue in a long term descent back below 3000.
Short term, I am bullish:
Target 1: 4400
Target 2: 5900
Beyond that, yet to be determined.
Have a great day!
Well since my last analysis, the falling wedge did indeed break upward, and has continued upward with momentum. I suspect that this will hit major overhead resistance at around 4400, which coincides with previous resistance/support in 2017 plus the falling 50 EMA. This presents a good opportunity for a pullback and allows me to pencil in the head and shoulders formation. Even the head is kind of wonky, the neckline could be quite obvious at this line of resistance. For you Elliott Wave fans, you can also imagine that we could be on Wave 1 of a new bull impulse wave with the right shoulder mirroring a wave 2 retrace and the beginning of a wave 3, before breaking out of the head and shoulder pattern. The target of the inverse H&S pattern is the height of the head to neckline, which puts us right at a retest of the major overhead resistance of 5800-5900. We touched this level back in February, June and August before breaking down from the descending triangle. This will be a major battle here, and unless we break above that level, the bears are still in full control and we could continue in a long term descent back below 3000.
Short term, I am bullish:
Target 1: 4400
Target 2: 5900
Beyond that, yet to be determined.
Have a great day!
Comment:
Better get ready...this Inv Head and Shoulders is forming up and the right shoulder will soon begin to rise again. Then we can expect a battle at the neckline around 4300. If there is a breakout above the neckline, we may see a retest of that level around before exploding upward. Major resistance will stop the rally at 5500-5800 level, so taking profit there may be a good idea to see if BTC remains in the bearish market or the bottom has truly been reached.
