Bitcoin has proven really interesting lately. our head and shoulder pattern didn't form which is unfortunate. But if you shorted it, you should have gone in light and it shouldn't have made a difference since we rode this thing up from 4.5k for a nice profit. If you did short it, your short should also still be active and have stops just above 9.1k.
Lets observe a couple things that are going on. We'll start on the major time frame and work backwards.
Weekly chart: RSI is creating a massive divergence. RSI broke down, price moved up and RSI didn't follow. Could this be an indication of further downside or just a ruse? MACD is tapering off, appears to be losing momentum.
Daily: RSi is now quite interesting. On the one hand RSI has broken the red trendline, on the other it hasn't gone up past the previous high as indicated by the purple. Not really a divergence but it's kinda there. MACD has crossed up.
Notice the recent candles, they appear to be losing momentum. Could this be that the buyers are just slowly getting rid of the sellers or could it be that the buyers are losing steam? Hard to tell at this point. A couple things we can anticipate now.
1. If we get a pull back to this 8k level and it HOLDS. We close our shorts and go long with a stop right under. This would indicate completion of the triangle and we can have an entry that gives us a target of at least 10k, maybe higher. 2. If it breaks 9k right now, we'll go higher. Probably mid 9's or 10k. you could easily argue we would go right up to 12.5k. The width of the triangle dictates we would go to about 10.5-11kk.
That's what I am looking at right now. What do you think?
Happy Trading and hodling, -Sherem
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Previous ideas:
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as always, please smash that like button.
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What's interesting here is that we haven't gotten quite the follow through I would expect from a break up above 9k. The pattern that has formed on lower time levels doesn't appear to be good. We'll have to see what it does here at these levels.
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For those watching, expect more downside if this pattern holds:
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Press play and see where BTC stopped. Right about at my arrow. Boo ya.
Looks like price could be early in forming a H&S with the left shoulder at 8800 and the head around 9300... Early but starting to look like it might form.
Sherem
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@theredbaronZ, I don't think so, it looks like it's an ascending pattern, similar to the H&S I thought was forming earlier. Unless it cracks 9,200 its going to move up some more