Hi traders.
In the meantime we can see that BTC is forming a larger triangle, in which we can expect shorter ABC swings.
What is happening?
As expected BTC bounced from our buy level. A potential inverse head & shoulders pattern is unfolding. If this pattern confirms, we can expect price to re-test the upper trend line of the triangle, because it is also the target of the inverse H&S, as well as the support line of the previous H&S (blue line).
How to trade it?
If you missed yesterday's entry, you may get a second chance to trade the swing - in case BTC is in a Wave C that extends into one of the two areas that I marked with a green box. These levels are the 100% and 162% extensions of Wave A. Wave C may come down in a 1-5 motive wave on a small timeframe - don't let price shake you out, stick to the precise levels.
What if not?
BTC may go up from here straight into the target area, without retracing deeper. The entire idea is invalidated if BTC goes lower and ultimately falls out of the triangle.
Happy trading!
In the meantime we can see that BTC is forming a larger triangle, in which we can expect shorter ABC swings.
What is happening?
As expected BTC bounced from our buy level. A potential inverse head & shoulders pattern is unfolding. If this pattern confirms, we can expect price to re-test the upper trend line of the triangle, because it is also the target of the inverse H&S, as well as the support line of the previous H&S (blue line).
How to trade it?
If you missed yesterday's entry, you may get a second chance to trade the swing - in case BTC is in a Wave C that extends into one of the two areas that I marked with a green box. These levels are the 100% and 162% extensions of Wave A. Wave C may come down in a 1-5 motive wave on a small timeframe - don't let price shake you out, stick to the precise levels.
What if not?
BTC may go up from here straight into the target area, without retracing deeper. The entire idea is invalidated if BTC goes lower and ultimately falls out of the triangle.
Happy trading!
Trade closed manually
Trade closed: target reached