Update on Double Tops on Bitcoin - Small Head and Shoulders?

I previously wrote about the double tops on BTCUSD . As you can see on the 1-hour chart for BTCUSD , it has tested the 0.618 line but up until now it failed to break through. It has actually tested this line by forming a potential mini head and shoulders pattern (you might need to zoom-in a little for that one). Whilst a small one like this does not mean something significant for the long run, it might make a nice short day trade. Other indicators such as the EMA tells us we are still going down, and the MACD might form a cross-over enforcing this idea. Another way of looking at it is seeing it as a potential bear flag. I expect it to test 8869 USD if the small head & shoulders is fully formed.

Please like & comment. If you have any feedback it is greatly appreciated.

Order cancelled:

Trade cancelled - too many mixed signals.

Comment:

Also - a drop might not per se indicate a short buy signal. It could also form a diagonally leaning inverse head & shoulders where the latest lowest point forms the head, further enforcing the earlier spotted and technically still valid head & shoulders. We would only need a shoulder to complete this pattern. If the price reaches and breaks through 8869 USD I will reconsider the 8869 - 8167 area.

*but to be honest, I want this thing to skyrocket lol, just trying to be objective and critical at the same time*

Comment:

I eventually took the risk anyway at $9150 to short BTC and took profits at $8875. I am watching the price action slowly at this moment. I expect to see another "mini" head and shoulders pattern emerge where the left shoulder starts at the 9th of March. Other possibilities could be that it is an inverted cup and handle, or if we move up from now on to $9463 we have an inverse head & shoulders pattern indicating a bullish signal (with an overlapping double bottoms you could say). Most important thing right now is to watch the break outs occur so it is clear which direction we are going.