BTCUSD Micro-Fractal Head and Shoulders

Real quick post becuase the chart says it all. It appears that over the last day we have formed a bearish head and shoulders pattern. Because crypto can be unorthodox this is a continuation pattern and not a reversal pattern. BTCUSD slammed down so hard against resistance that formed a head and shoulders instead of a more typical continuation pattern for stocks or other securities.

And, unless my eyes are playing tricks on me, we have a nested head and shoulders within the right shoulder of our larger head and shoulders. For the larger head and shoulders I ignored some wicking, particularly on the head to get this pattern. The green line you see is a resistance/support line that was pointed out on "The Moon" Youtube channel. He is still bullish but i am biased bearish as the last couple of post of mine will show.

If this formation leads to the 3% drop the formation suggest I think it will put to rest one of the last defences of the bulls that I see that has the most legitimacy.

Usual disclaimers (not financial advice, so forth and so on) apply. This is a very low timeframe and so charting can be difficult. There is a chance The Moon is right and I am wrong, etc. Please see the linked post to understand why I am so bearish.

Comment:

Starting to see what I want to see with the volume and the price action. This right shoulder is really weak with regards to hight and duration compared to the left shoulder and head, which is nice and bearish. The micro head and shoulders that I tried to fit in there seems to have been negated as the micro right shoulder based out a little higher and longer than the micro left shoulder, so I didn't bother to replicate it on the chart below. We are only 20 minutes into the hour in that snapshot but the volume is already picking up. Further, we see the 1h Hull MACD is converging to a bearish cross and it seems to me that this head and shoulders is about as close to breaking through as we could hope before the actual break through happens. Chances of me being wrong and shamed are less than 1%!

If this plays out as I am pretty sure it will we it will help people see these patterns, which are typically reversal patterns, as continuation patterns. Crypto gives us some unorthodox charting and one of my favorite youtubes was trying to fit an inverse head and shoulders where I saw the regular head and shoulders. And I know why he saw it incorrectly, because head and shoulder are typically at the top of uptrends, not as a continuation on a down trend instead of a triangle, wedge,flag or pennant.

And of course, the scary part, this price action could perform exactly as I hope, hit bottom, and tweezer all the way back up. Protect you gains.

Trade closed manually:

We have some provisional structure developing and considering how close we are to being overbought on the 6h I manually closed the stop for this trade. I was in short 8150ish. I am going to probably put a order to get taken in if we tank but right now BTCUSD looks like it is staying strong at 7300 and ETHUSD is hovering around 400. We are on our sixth red day right now so I would not be surprised if we have a serious bounce before days end or tomorrow. And if I am wrong there are always more trades.