Hello all!
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I just covered BTC on the daily frame and wanting to highlight the lower frame. Originally i never go below the 4h, but during possible reversals, it is almost always necessary to start from the highest TF and work your way down to the hour.
LETS GET TO IT!
We can see a head and shoulder pattern that i have labeled here in black with the right shoulder forming and ascending triangle which is normally bullish, so there is enough here on this chart to be bullish already.
The red trendline down has been broken which is again another bullish signal. We can see that the 8600, the 50% fib, is a very solid resistance level on both on the 1h,4h,daily, which is my reasoning of question here. If we can penetrate this, then we are looking to test the daily trendline again around >10k.
If the bulls fail, then the yellow scenario downward is very possible. This break down does not invalidate the head and shoulders though, so keep that in mind that a bullish play will still be in action unless the dip below the left shoulder happens.
I personally believe we will fall downward due to higher TFs to the 6k region, however anything can happen and it is encouraged to trade breakouts rather than predictions!
Have an excellent day!
Add Symbol
I just covered BTC on the daily frame and wanting to highlight the lower frame. Originally i never go below the 4h, but during possible reversals, it is almost always necessary to start from the highest TF and work your way down to the hour.
LETS GET TO IT!
We can see a head and shoulder pattern that i have labeled here in black with the right shoulder forming and ascending triangle which is normally bullish, so there is enough here on this chart to be bullish already.
The red trendline down has been broken which is again another bullish signal. We can see that the 8600, the 50% fib, is a very solid resistance level on both on the 1h,4h,daily, which is my reasoning of question here. If we can penetrate this, then we are looking to test the daily trendline again around >10k.
If the bulls fail, then the yellow scenario downward is very possible. This break down does not invalidate the head and shoulders though, so keep that in mind that a bullish play will still be in action unless the dip below the left shoulder happens.
I personally believe we will fall downward due to higher TFs to the 6k region, however anything can happen and it is encouraged to trade breakouts rather than predictions!
Have an excellent day!
9500 is next target unless a drop happens.