our 1H H&S pattern has been completed on Friday by occasional spike up of NFP release. Longer term analysis mostly makes us to look south. It means that every time when market will come to long-term trendline - it is time to go short, especially if we have some bearish continuation/reversal pattern. Now it is around 6800 - 7000$ on daily chart.
Longer term analysis holds us from taking any long position. It will be possible if long-term triangle will be broken up. Now we see more chances of 6000$ breakout.
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Nice identification of the head and shoulders pattern on BTCUSD and there may be potential gains as you have identified by going short. The 1st resistance level that we have found is at 6809. It is a horizontal overlap resistance, with a 50% Fibonacci retracement and 61.8% Fibonacci extension. RSI is approaching resistance and we might see a corresponding drop in price should it react off this level. If a corresponding drop does happen, we have found a major support level at 5890. It is a horizontal swing low support with a 61.8% Fibonacci extension. Excited to see how things develop.
Please take a look at our idea and share with us what you think.
Please take a look at our idea and share with us what you think.