MagicPoopCannon

BTC On The Verge of Collapse, Testing EXTREMELY IMPORTANT LVL!

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Bitcoin has two conflicting formations on the chart right now. First, we have the descending wedge (shown in black dashes) which is a bullish pattern . However, we also have a head and shoulders pattern on the chart. There is a clear left shoulder, a large head, and a clear right shoulder. The neckline of the head and shoulders pattern is shown in red.

The question is, which pattern will prevail? That's something that we can't guess. We simply have to monitor both scenarios, to see which one will break out first. I am leaning more bearish right now. Simply because the bears are clearly in control here. BTC has consistently made lower highs and lower lows, and it is still doing that to this day. Ever since the high of 13,800, the bears have been absolutely dominating BTC . So, until that trend changes, we have to give the edge to the bears, and the large head and shoulders pattern on the chart.

With that said, BTC is retesting an extremely important area at this very moment. Looking at the chart, you can see that the neckline of the head and shoulders pattern, the 61.8% retrace, and the 50 week moving average (in orange) are all converging in the exact same area. So, if this area is broken, there is a very high chance that BTC will drop substantially. In fact, I believe that if BTC closes today's candle below those three features, it could rapidly fall to the top of my blue downtrend channel , which is right above 6000 at the moment. This action right here is extremely important. A hold or a failure here is very likely to dictate the direction of next few weeks of trading.

Looking at the MACD , we can see that it is forming a mild bullish divergence , but nothing too powerful. If you recall, I had the head and shoulders formation on the chart before, and I took it down for a day to talk about the possibility of the falling wedge . Right now, the trading action is definitely favoring the head and shoulders formation. However, that could change if price holds on the neckline and rallies higher.

I will leave you with this. If this head and shoulders breaks down, I feel very confident that BTC will fall to 3000 or lower. In fact, I think 1200 will be a very real possibility if this head and shoulders breaks down. Obvoiusly, it wouldn't be immediate. But if this pattern breaks down, I think it will lead cause BTC to fall toward the 1200 level within the next few months.

I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.

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

-JD-
Like clockwork...
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It failed!!!! 1k!
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Bitcoin may hit another low before heading back up, and most likely will happen in 2020
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I am not a huge fan of indicators and patterns but for now I really do not see much buying power. What is worth is that BTC gave up 7250-7370 zone which for was a strong buyers opportunity. My play is selling BTC, targeting 6860 swing low.

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Agreed medium term is still bearish without clearing the 1.618 level. Short target profit still at 6,300

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I am short and then long
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I agree, its crazy how people throw so much shade at other people's interpretations of what the market will do.. actually it's pretty sad lmao
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