The numbers marked on the chart for 4 hour timeframe of Bitcoin (BTCUSD) are discussed in the commentary below.
(1) Current (active) bullish price channel in Bitcoin ever since August 14, 2018. The channel also incorporates part of the head (H) and right shoulder (RS) of an inverted head and shoulders (or head and shoulders bottom) formation as indicated on the chart.
Price moving along the channel could possibly see a test of the bottom of the channel at ~$6,382.40 before bullish momentum resumes.
(2) ~$6,632.50 marks the confirmation of the inverted head and shoulders bottom. The point of invalidation after confirmation of the pattern is a close below $5,866.70; the price low of the head (H).
(3) The relative strength index (RSI) as shown here indicates that the current bullish momentum is almost running out, and it is therefore best to wait for further development in price action before initiating any long (buy) position(s).
@Coin_Analyst what about that huge bearish h&s? head is at 8500 and the shoulders are hitting 6800....
braddles69
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@djhaf, if you can see it, it has already corrected....new pattern has begun
Coin_Analyst
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@djhaf, thanks a lot for your comment and I actually can see what you are talking about. The bearish H&S has not yet been confirmed by the market closing under ~$5757.40. Secondly momentum on a longer timeframe (e.g. Weekly) is consolidating, so that is another reason to be suspicious and/or favor a bullish bias. Price eventually will and always moves in the path of least resistance. So in this case, YES. The huge possible bearish H&S will be one of the scenarios that the analyst would need to watch out for and other probabilities for a particular market.