The Importance of Looking at Multiple Timeframes/Charts

Lots of folks are pointing out a potential inverse head and shoulders trying to form on Bitcoin. It would be great to see that play out, but I am not so sure about it. If you zoom out to the weekly close you will see a high wave candlestick on every BTCUSD chart, as well as the XBTUSD chart on Bitmex. Speaking of Bitmex, I also see the price action respecting a downward trend on the resistance. It is easy to fall into the hype when we see patterns start to form that may signal something we desperately want to see happen, but it is important to do our best to remain objective. Case in point, last week I pointed out that we were seeing an ascending triangle start to form. Shortly after that post, it broke down. Even though we are seeing a beautiful potential setup of an inverse head and shoulders right now, we have not seen confirmation yet. What we have seen confirmation of is a weekly close that signals a potential reversal from our prior upward trend. We also have another confirmation we can count on happening later today, which is the monthly close. The next 24 hours will be interesting.

I am just an amateur at this stuff like 99% of everyone else on this site, but I do know one thing, the importance of minimizing risk. In a bear market I am going to be biased towards the bears until proven otherwise, and this inverse head and shoulders pattern has not played out yet while the signs that this rally may have worn out it's welcome has. Consider me bearish for now. I hope I am proven wrong. I would love to see the reversal everyone else is hoping for too.