Please stop with the I-H&S, This is not a typical I-H&S
This is a really ugly H&S pattern, and IMHO. Instead of making a right shoulder, it's more likely that we will consolidate and keep impulsing higher, only to get rejected at some point. This is NOT a H&S pattern.
Here is why I do not consider this a I-H&S pattern.
1) In a typical head and shoulders pattern, most of your volume would be in the left shoulder, and left side of the head. There should be a decrease of volume from the head to the right shoulder with natural and seamless increase in price action.
Since we see an increase in volume past our recent low, it's evident we are just increasing in price against the prevalent trend and there is a lot of negative momentum enacting on bitcoin. If this is indeed true, when we do finish the bounce, it will get rejected hard and evolve into the real pattern. It's just too soon, quit getting so dang excited when something LOOKS like a bullish pattern but doesn't qualify as one.
2) The neckline is ugly. If you take the channel tool like I have and connect the neckline to the bottom of the left shoulder, you can see how low the right shoulder can go until it is invalidated. Take note how the right shoulder cannot go lower than the head in price. The left shoulder is majorly disproportionate to the head here and is simply too large.
3) This concern doesn't invalidate the pattern, but a jagged head rather than a rounded head is not what you typically want to see in a H&S pattern.
Here is why I do not consider this a I-H&S pattern.
1) In a typical head and shoulders pattern, most of your volume would be in the left shoulder, and left side of the head. There should be a decrease of volume from the head to the right shoulder with natural and seamless increase in price action.
Since we see an increase in volume past our recent low, it's evident we are just increasing in price against the prevalent trend and there is a lot of negative momentum enacting on bitcoin. If this is indeed true, when we do finish the bounce, it will get rejected hard and evolve into the real pattern. It's just too soon, quit getting so dang excited when something LOOKS like a bullish pattern but doesn't qualify as one.
2) The neckline is ugly. If you take the channel tool like I have and connect the neckline to the bottom of the left shoulder, you can see how low the right shoulder can go until it is invalidated. Take note how the right shoulder cannot go lower than the head in price. The left shoulder is majorly disproportionate to the head here and is simply too large.
3) This concern doesn't invalidate the pattern, but a jagged head rather than a rounded head is not what you typically want to see in a H&S pattern.