Many have called for it for a long time. How fitting if it came on the last day of this crazy year of 2017.
We see this wonderful Head and Shoulders that formed throughout December.
Head and Shoulders is a bearish reversal pattern, but to be honest, they often fail and don't break down. But when they do break down, they are highly predictive.
But in the last weeks, we've seen some very BEARISH activity.
We were unable to make new highs in the last week, and we broke through the 200 period moving average, as well as the trend line that connected the uptrending lows price points.
Now we are testing the NECKLINE support at the psychological lucky number 13000 level.
If we break 13000, it's clear, our target is the 161.8% projection based on the depth of the "head" in the "head and shoulders", which lies at 9500.
If we can break 9500, then we have a very strong support level at 8500, which was a former consolidation area.
LONG STORY SHORT: If we break this current level, we should see much lower prices.
LONG TERM: I am bullish overall, but I think we need a price shock to shake out the weak hands and a few more months at least to stabilize before the next move up.
THE SWING TRADE: On a website like BITMEX you can short XBT (Bitcoin). But on most other sites, that's not possible, so at least get out of your positions and save up some cash to buy at those levels. I personally will be buying new positions at each stop, around 10k, 9.5k, and definitely 8k. We should see a bounce from one of those levels.
I don't see that bearish trend on the EURO chart in Kraken though. If we fall down below 10k EUR then I may consider your point but now we should take into consideration the NYE and the less activity on the market. Not to neglect the activity on Ripple which took people's attention which may also result into bitcoin not being bulish atm
Do you think BTC averaging at 13 indicates it'll hold the psychological barrier or are the dips still strengthening your feeling on this model? Would be great to get an update on if you think this failed or might still happen. I understand you think a deeper BTC correction is generally overdue.
Do you think BTC averaging at 13 indicates it'll hold the psychological barrier or are the dips still strengthening your feeling on this? Would be great to get an update on if you think this failed or might still happen. I understand you think a deeper BTC correction is generally overdue.
CryptoCuriosity
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Do you think BTC averaging at 13 indicates it'll hold the psychological barrier or are the dips still strengthening your feeling on this model? Would be great to get an update on if you think this failed or might still happen. I understand you think a deeper BTC correction is generally overdue.
Sync38
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The volume doesn't register a HS pattern which is a key indicator right? IMO we are just consolidating atm, lowest price move i can see is the 10.8k mark at the worst case in the next few days to finalize the ABC correction.
Nice analysis btw!
BerlinTrader591
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@Synco, I personally think that if we see 10.8k, then we will see a bounce, and depending on that bounce, weak or strong we will know if we can short again for my final target around 9600, then 8k
MarRob
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Hi , considering that the height of the head from the neckline is aprox 7k (20.000 - 13.000) , shouldn't the price target be neckline minus head height , and therefore 6k ? (13k-7k) . Thank you fot your analysis :D