This analysis will be short and sweet.
I am short term bullish on Bitcoin at the moment based on a couple of patterns. On the 4 Hour chart you can see that an inverted head and shoulders pattern has been forming over the past few weeks. Within the right shoulder it also appears that a textbook ascending triangle is forming along with contracting volume. A bullish pattern within a bullish pattern.
Many on here have been posting about a bull flag, however I don't believe that is what is happening as the lines for support and resistance are not parallel. There should have also been increased volume to support the recent "breakout".
Short-term levels that i'm watching are the support and resistance lines on the ascending triangle. In the event of a breakout the next level to watch will be the neckline of the inverted head and shoulders. I believe that a breakout of the neckline could result in a move up to the 5k area. -- If Bitcoin breaks down from the ascending triangle there could easily be a retest of the 3K area. The 3.7K area (gray line) also seems to be an area worth watching for possible support but it doesn't look like a very strong area.
A rule I have when doing technical analysis is to not overcomplicate things. You don't need tons of fancy indicators or to try and count waves which is highly subjective.
The simpler the analysis, the more likely other traders will see it too, which increases the odds of it working out.
*This is not financial advice. For entertainment and educational purposes only.
-Brad
I am short term bullish on Bitcoin at the moment based on a couple of patterns. On the 4 Hour chart you can see that an inverted head and shoulders pattern has been forming over the past few weeks. Within the right shoulder it also appears that a textbook ascending triangle is forming along with contracting volume. A bullish pattern within a bullish pattern.
Many on here have been posting about a bull flag, however I don't believe that is what is happening as the lines for support and resistance are not parallel. There should have also been increased volume to support the recent "breakout".
Short-term levels that i'm watching are the support and resistance lines on the ascending triangle. In the event of a breakout the next level to watch will be the neckline of the inverted head and shoulders. I believe that a breakout of the neckline could result in a move up to the 5k area. -- If Bitcoin breaks down from the ascending triangle there could easily be a retest of the 3K area. The 3.7K area (gray line) also seems to be an area worth watching for possible support but it doesn't look like a very strong area.
A rule I have when doing technical analysis is to not overcomplicate things. You don't need tons of fancy indicators or to try and count waves which is highly subjective.
The simpler the analysis, the more likely other traders will see it too, which increases the odds of it working out.
*This is not financial advice. For entertainment and educational purposes only.
-Brad
Comment:
Break out from the ascending triangle! :)
Comment:
Fakeout Breakout from the ascending triangle. Price was rejected at the 50 EMA and is now sitting at the support line around 3.7K. A break below could easily send the price back to the 3K level. If we hold we could see a retest of the 50 EMA / Head and Shoulders neckline.
Comment:
Ooops, Meant to post Daily Chart.