BITCOIN'S OBSCURE BULLISH PATTERN, WILL IT PLAY OUT THIS TIME?
Bitcoin appears to be giving a conflicting signals as the bulls and bears battle it out within a very tight range. We may be seeing another week of consolidation as the 50 day MA is still flat (though it appears to be turning upward slightly).
However, the price action at this level seems to be forming what appears to be an obscure inverse head and should with the right should gradually forming out. Looking at the daily chart from left, we can see the previous failed inverse head and shoulder which got rejected at the 4200 area.
The 4200 area appears to be the resistance the bulls will have to battle with again if this second inverse head and shoulder is to play out.
The right shoulder has it bottom at the 3650 support, and the tip of the breakout at the 4200 area. I did expected the 50 day MA which is just around the 3650 area to provide support for the bulls if this bullish pattern is to play out. If the 3650 support holds, then I expect a retest of the 4200 resistance area, and a possible break above that area. The breakout target for this inverse head and shoulder is at 4800-5000.
Also, on the weekly time frame, I am seeing what appears to be an ascending triangle with the breakout point at 4200 area, while on the lower time frame, I am seeing what appears to be a rising wedge formation.
Putting it all together, the rising wedge formation in the short time frame shouldn't be a thing to worry about, as a break below will only land us to the 3700-3650 area which is right on the daily support level, and that should probably give us our higher low on the weekly.
So on the overall, #BTC seems to be bullish as of now, but unfortunately sentiments have turn bearish as shorts are already piling up strongly, while longs are very low. Another liquidation may just be around the corner IMO. Overall, it is better to just stay on the sidelines for now, and wait for a clear confirmation of market direction.
However, the price action at this level seems to be forming what appears to be an obscure inverse head and should with the right should gradually forming out. Looking at the daily chart from left, we can see the previous failed inverse head and shoulder which got rejected at the 4200 area.
The 4200 area appears to be the resistance the bulls will have to battle with again if this second inverse head and shoulder is to play out.
The right shoulder has it bottom at the 3650 support, and the tip of the breakout at the 4200 area. I did expected the 50 day MA which is just around the 3650 area to provide support for the bulls if this bullish pattern is to play out. If the 3650 support holds, then I expect a retest of the 4200 resistance area, and a possible break above that area. The breakout target for this inverse head and shoulder is at 4800-5000.
Also, on the weekly time frame, I am seeing what appears to be an ascending triangle with the breakout point at 4200 area, while on the lower time frame, I am seeing what appears to be a rising wedge formation.
Putting it all together, the rising wedge formation in the short time frame shouldn't be a thing to worry about, as a break below will only land us to the 3700-3650 area which is right on the daily support level, and that should probably give us our higher low on the weekly.
So on the overall, #BTC seems to be bullish as of now, but unfortunately sentiments have turn bearish as shorts are already piling up strongly, while longs are very low. Another liquidation may just be around the corner IMO. Overall, it is better to just stay on the sidelines for now, and wait for a clear confirmation of market direction.
