VaidoVeek

BITCOIN - TWO Bearish Chart Patterns!

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
I have received several requests about the update so, I will fulfill your wishes ;)

Last trading idea, from the strong area around $8,000 which got confirmed after bearish candlestick patterns was successful, the price dropped exactly to the lowest pointed strong area at $6,700. Really quickly it bounced back up and stopped exactly in the middle of those two price levels, yesterday it was really hard to say what we may see about next but today we have some conclusions about the situation on the market and I like to share those with you.

As you already noticed on the image above, the price has started to draw a bearish chart pattern called Head and Shoulders . This is even a pattern inside a pattern situation because, as you watch that top very closely then there is a Double Top formation:

The Double Top pattern is already valid and it's "working" because it has a breakout from the pattern neckline (as it is on the image) BUT really often the price retests the breakout area and after that, it continues to the breakout direction (shown on the image). Currently, this Double Top neckline retest matching exactly with the Head and Shoulders right shoulder, almost perfectly. We had before that drop from $8000 possibly two candlestick pattern to guide us downwards, right now we have two chart patterns which should guide the price down to the $6,000, let's see pretty interesting and actually, this level $7,800 is a pretty clean resistance level/Double Top neckline/Right Shoulder and it has multiple names - watch it closely!
Remember, Head and Shoulders starts to work after the neckline breakout downwards!

Definitely, the resistance around the orange line is pretty hard to beat but if the price still wants to make breakouts upwards then, remember, the confirmation was a Weekly candle close above $8,000 and the Bitcoin price should be heading into the $10,000.


"What separates the “consistently great” athletes and performers from everyone else is their
distinct lack of fear of making a mistake."
– Mark Douglas


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Previous analysis:


This mentioned Weekly chart analysis:



Have a nice weekend,
Cheers!

*This information is mostly used for educational purposes only!
Comment: The red box is the area where you should wait for a rejection. Great would be a bearish candlestick pattern on this area at least 4H+ timeframe!

Do not hesitate to support my idea post by hitting the "LIKE" ;)
Cheers!
any update ?
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Sorry to tell you, your shoulder is busted, it's a big Bear trap
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Interesting! In the meantime take a look at what my traders are accumulating BTC with.
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Lets forget the rsi then and the possible cross of 7450 lol
+1 Reply
Nice analysis. Im seeing a similar thing
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good work dude



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