Bitcoin Hypothetical Extremely Bearish Possibility Short Term
I took the liberty to post a potential bearish Bitcoin outcome in the short term.
I noticed what appears to be an Inverted Exotic Dragon Pattern once again. If it plays out again, and reaches its potential target
then it may set up the second point needed in order to draw out the neckline of a potential bearish Head & Shoulders Top in the making.
If this pattern were to materialize then the target point would be at approximately $17,500ish which would coincide with a 78.6%
retracement of the whole move since the November low to the February high. Then rebound from there(higher low) and shoot into orbit in wave 3.
I didn't include any oscillators in the chart, however, there is a definite negative divergence at this juncture that can be seen if one were to plot an oscillator such as the ROC(Rate Of Change)etc..
This is a potential short term bearish idea that may develop. However, since BTC is highly correlated to the Nasdaq Composite, it would imply that the Nasdaq Composite would have to breach, rather than bounce off of, its current test(throw-back) of the prior downtrend line(Secondary Trend/Correction) and Trend Reversal from which it broke through to the upside in the beginning of February upon which, and I quote:
"Hedge funds' short-covering of tech bets is 2nd biggest in a decade
-The report cites an investor note from Goldman Sachs as saying that "short covering" in the period from 31 Jan to 15 Feb was "the second largest in magnitude over any 12-day period in the past decade".
Therefore, this should be quite interesting to say the least. In my humble opinion............
Let the game begin!
I noticed what appears to be an Inverted Exotic Dragon Pattern once again. If it plays out again, and reaches its potential target
then it may set up the second point needed in order to draw out the neckline of a potential bearish Head & Shoulders Top in the making.
If this pattern were to materialize then the target point would be at approximately $17,500ish which would coincide with a 78.6%
retracement of the whole move since the November low to the February high. Then rebound from there(higher low) and shoot into orbit in wave 3.
I didn't include any oscillators in the chart, however, there is a definite negative divergence at this juncture that can be seen if one were to plot an oscillator such as the ROC(Rate Of Change)etc..
This is a potential short term bearish idea that may develop. However, since BTC is highly correlated to the Nasdaq Composite, it would imply that the Nasdaq Composite would have to breach, rather than bounce off of, its current test(throw-back) of the prior downtrend line(Secondary Trend/Correction) and Trend Reversal from which it broke through to the upside in the beginning of February upon which, and I quote:
"Hedge funds' short-covering of tech bets is 2nd biggest in a decade
-The report cites an investor note from Goldman Sachs as saying that "short covering" in the period from 31 Jan to 15 Feb was "the second largest in magnitude over any 12-day period in the past decade".
Therefore, this should be quite interesting to say the least. In my humble opinion............
Let the game begin!
Trade active:
First Target has been reached. Now awaiting a reversal! This is the original, however, updates have been posted.
All the best!
All the best!