cryptoniter

Possible head and shoulders forming on BTC

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
New post on BTC             as I promised. The last time I did a BTC             post I was unsure what was going to happen and I was leaning towards a long (you can see the reasons on my analysis). BTC             rejected the resistance which made it break down to where we are now. We are currently hovering between ~10,300 and I'm seeing a head and shoulders pattern here. Doesn't mean that it has to break down at the end of the right shoulder but I think it'll just follow the pattern.

The reason I think a head & shoulders is likely to happen is because it kinda matches the volume profile .
1) Volume during the advance of the LS is slightly higher than the advance of the H.
2) Volume increases during the decline of the peak of the head and you can see it here: massive selling volume .
3) Right shoulder volume should be lower than the head decline should H&S be valid. We'll see if that's going to be the case. See OBV for possible trend line for a right shoulder.

If the critical zone breaks the H&S won't be valid anymore.

Also RSI is oversold on the 1H which would support the right shoulder forming. The 26ema has been acting as a pretty good support/resistance for the last few days/weeks. Should check it out more.

We might also be seeing a new H&S forming with the recent 'head' being the left shoulder but I'm not convinced about that yet. The last option is that we're going to see more boring consolidation between 10,300 and 11,000 but who wants that :(

LS = left shoulder
H = head
RS             = right shoulder

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Comment: Testing neckline. Looking ugly right now
Comment: My bold idea did not go as planned. I must now commit seppuku
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