Hello everyone,
Since our last post, BTC has made significant downward movements and reached around $6,000 before bouncing again.
In this post, we're going to discuss the possibility of yet another H&S forming here, and the possible breakdown (if this comes true) could drop us significantly lower than our previous lows.
Since our drop from around $20k, we've identified a series of H&S patterns that pushed price lower (between 25%-29%) from the necklines.
There are some conditions for this to materialize. We need to see a relief from here. Since our drop to $6k yesterday, we noticed a divergence from the RSI (making higher lows) which was supported by our bounce today. If we continue to go higher, we will meet our first major resistance range around the $6,6xx-$6,8xx. A drop from there back to around $6k will complete the formation of the right shoulder. From there, we need to see a confirmed breakdown from the neckline. Only then will this theory become valid.
To technically invalidate this theory, we should see a break from the head ($8.5k).
This is all, of course, purely speculative. This series of H&S is not the holy grail of BTC patterns, and BTC could completely disregard our outline on the chart. Despite this, we thought it would be best to bring this to your attention as we like to share as much as we can, whether it proves true or not.
Thank you all for reading.
Since our last post, BTC has made significant downward movements and reached around $6,000 before bouncing again.
In this post, we're going to discuss the possibility of yet another H&S forming here, and the possible breakdown (if this comes true) could drop us significantly lower than our previous lows.
Since our drop from around $20k, we've identified a series of H&S patterns that pushed price lower (between 25%-29%) from the necklines.
There are some conditions for this to materialize. We need to see a relief from here. Since our drop to $6k yesterday, we noticed a divergence from the RSI (making higher lows) which was supported by our bounce today. If we continue to go higher, we will meet our first major resistance range around the $6,6xx-$6,8xx. A drop from there back to around $6k will complete the formation of the right shoulder. From there, we need to see a confirmed breakdown from the neckline. Only then will this theory become valid.
To technically invalidate this theory, we should see a break from the head ($8.5k).
This is all, of course, purely speculative. This series of H&S is not the holy grail of BTC patterns, and BTC could completely disregard our outline on the chart. Despite this, we thought it would be best to bring this to your attention as we like to share as much as we can, whether it proves true or not.
Thank you all for reading.
