MagicPoopCannon

Bitcoin (BTC) Acting As Expected! =D

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Hi friends! I hope you are all doing well. Looking at the four hour chart for Bitcoin             , we can see that the proposed inverse head and shoulders pattern is filling in nicely. Price action is currently testing the 200 EMA (in purple,) as selling pressure continues to dominate the crypto markets. Taking a closer look at yesterdays selloff, we can see that a hammer candlestick was formed, and that there was a volume spike, which was about five times the average volume . Typically, this is indicative of a capitulation or "panic selling," in the market. Capitulation selloffs often present value, and can generate trend reversals. However, that doesn't necessarily mean that this is a valuable entry point. To be certain that a trend reversal has taken place, and that the selloff as run its course, we need to see evidence. Such evidence would include a sustained break above the 50 EMA (in orange,) and a move higher into the proposed right shoulder (?) of the possible inverse head and shoulders pattern (in green.) Additionally, it would be a positive sign to see a bullish cross on the MACD , that confirms a shift in momentum. Ideally, for the sake of the proposed head and shoulders pattern, we don't want to see much more downside. The hammer candle and volume spike could indicate a trend reversal in this selling wave, which could send prices higher to complete the construction of the proposed right shoulder. However, a break below the "Critical Support Level ," would negate the proposed inverse head and shoulders pattern, and likely trigger immense selling in BTC             , and subsequently, the entire crypto space. I will keep you posted as the chart develops.

There is a lot of volatility in the crypto space right now. Be nimble. Have a price target. Have an exit strategy. Do your own research, and let the MagicPoopCannon be your guiding light!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-JD-
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