As for weeks as I have described, that there would possibly be a inverted head and shoulder occurring in bitcoin, it is coming into fruition, it is still far too early for to confirm it is a inverted head and shoulder pattern, usually, you cannot truly confirm something until it has happened, but I have drawn a macro image of what is currently happening.
Currently there are two major trendlines that have been broken, however, it has made itself back into one of the trendlines and that was the bullish growth trendline in dark red that occurred before the parabolic move in late November early December. The next step is currently 6850, and the price objective of the current bull flag has placed it above 6850, as you can see when you zoom into my drawing, I did draw what the neckline would possibly look like in light blue as well as the movement of the . If you zoom into my chart, you can see that bitcoin did bounce from a short-term double bottom with several bullish divergences. Those can be found in my previous analysis which will be linked to this one. A strong break above 6850, with a subsequent drop to 6850 as support would strongly support the idea of a bullish inverted head and shoulder reversal pattern which would strongly support the double bottom of the descending triangle in the longer time frame at the price of around 5750. The next step after that would be a retest of the trendline that is the descending triangle. In reference to time and price movement, the retest would occur around 8000, the resistance trendline of the descending triangle is in green. The probability of the bull flag hitting its price objective is around 75% however, I would reduce it to probably around 60% due to the fact that there is currently significant resistance and we are still in a bear market.
Key points:
1.) We are currently still in a bear market and so, bearish analysis should take precedent. However, the bulls are making strong headway.
2.) Long Term price objective is around 4800 until 8000 is broken and a reversal pattern has been confirmed.
3.) Shorter term price objective is around 6850 and a significant break above this would have stronger bullish sentiment.
Currently there are two major trendlines that have been broken, however, it has made itself back into one of the trendlines and that was the bullish growth trendline in dark red that occurred before the parabolic move in late November early December. The next step is currently 6850, and the price objective of the current bull flag has placed it above 6850, as you can see when you zoom into my drawing, I did draw what the neckline would possibly look like in light blue as well as the movement of the . If you zoom into my chart, you can see that bitcoin did bounce from a short-term double bottom with several bullish divergences. Those can be found in my previous analysis which will be linked to this one. A strong break above 6850, with a subsequent drop to 6850 as support would strongly support the idea of a bullish inverted head and shoulder reversal pattern which would strongly support the double bottom of the descending triangle in the longer time frame at the price of around 5750. The next step after that would be a retest of the trendline that is the descending triangle. In reference to time and price movement, the retest would occur around 8000, the resistance trendline of the descending triangle is in green. The probability of the bull flag hitting its price objective is around 75% however, I would reduce it to probably around 60% due to the fact that there is currently significant resistance and we are still in a bear market.
Key points:
1.) We are currently still in a bear market and so, bearish analysis should take precedent. However, the bulls are making strong headway.
2.) Long Term price objective is around 4800 until 8000 is broken and a reversal pattern has been confirmed.
3.) Shorter term price objective is around 6850 and a significant break above this would have stronger bullish sentiment.
Comment:
There is currently a strong pennant forming, however, it is important to know that it is just under strong resistance, it is a continuation of the breakout occurring from the bear flag. I have drawn it in green, the price objective is to the left and it is blue (it is the price objective of the bull flag).
Comment:
I forgot to put in my previous analysis, so here it is:
