Possible bearish divergence and inverse H&S at the same time?!?

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Dear all,

After the rally, and the 30% decline it is time to take a closer look at bitcoin again.

Bitcoin has been facing allegations in calmer waters . Currently we see a head and shoulder pattern in the making, on the 1 hour time frame. If it breaks the neckline of 680, my target will be 770. (570-670=100, 670+100=770)
I recommend you to keep watching the resistance at 680 and to keep in mind that this resistance should be broken with a hugh increase in volume , to be valide...

Another thing that I've noticed is the bearish divergence, which has formed on the 1h, but not on the 4h. Because it hasn't formed on the 4h yet, this could mean the next wave on the RSI will be higher than 75 to make the bearish divergence invalide, which is also inline with the bullish H&S .

If BTC doesn't break the resistance at 680 before the end of the month, I would say that the H&S is invalide. For now it's to early to say and everything looks still very promising with the inverse bullish H&S in mind!
Keep watching 680 :)

Good luck trading guys!


I think its a stretch to call it a head and shoulders. Your 'left shoulder' is just part of the big leg down, to me. You're seeing bearish divergence as momentum slows and price settles in on the 50% pullback level of the bear swing. Whether that bear swing gets another leg down or whether it becomes just a pullback in the larger bull trend is of course the million dollar question! :) Cheers.
+1 Reply
Maddie thejohn74
Dear John,

A H&S can be a part of a leg down, or up. (it mostly even is)
The bearish divergence seems not strong enough to me, but we have to wait and see, and still keep watching 684 !
Sure this is just a pauze to build more momentum before we go up again, what goes up fast comes down even faster :)

We just broke below the lower support of the flag pattern, lots of FOMO on the markets, sold @ 642, and just bought back a bit!
Now the 642 is a resistance instead of a support. This decline is good news btw, we can build more momentum to move up again :)

Keep in mind that BTC is still very unappreciable and you have to keep your focus at all time!
I'm curious about the marketing psychology, shortly before the halving.

Good luck trading guys!
Maddie Maddie
UPDATE: 449 is out resistance for now!
To stay with your head and shoulders - why assume the arm looks just like a trend channel and has no elbow? That may be true but just in the people's heads, while her elbow may just be a little bend to push the forearm stronger, steeper, faster to 700
Maddie Sakakikunmakio
The bear div turend out to be real ;p So we went down a bit, like expected. To me this looks like second right shoulder probably in the making. I also see some bull dive now! So I'm still watching that 684 target.

Good luck trading,
Maddie great work. I have a bit of a different thought but there is so much going on right now it is hard to get a good read. I had a structure just finish its "Z" wave and this is the start of an A-B-C correction. Just thought I would put that out there.
Maddie nahidik
Dear Nahdik,
Thanks for giving your opinion, but I don't really understand it, so your chart has 2 possible options, to go? Up, or down haha ;p
BTW I don't use EW so I can't give my opinion about that.

Would you next time not post your own chart here, but send me a DM? :)
Thank you very much !

Have a good day
nahidik Maddie
It could go sideways lol, Just to be clear break the little flag down to support where it may bounce or break for more down. Trading is dynamic so I react as things change. Sorry won't post again Cheers
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out