BITCOIN - About the Patterns, Bearish Confirmation Area
Currently, the price has drawn to us several chart patterns where we can start to make our technical analysis.
There are marked one bigger Head and Shoulders and there are also a bit smaller inverted Head and Shoulders. That says already that it is very difficult to predict precisely how and where the price can go but let's try to guess it anyway.
Head and Shoulder (green lines) pattern were actually triggered yesterday. I made also update and after that, the price falls around to the $4,750, it got a bounce from there and right now the price is started to form another pattern (pattern inside the pattern) Rising Wedge. Rising Wedge is a continuation/bearish pattern and it will trigger after the breakout below the lower trendline. It is also some sort of retest situation - we have a breakout below the H&S neckline (the lower light blue line is the neckline) and now the price retest it. If the break below the Rising Wedge bottom trendline and break below the light blue line has occurred, then we have actually pretty good sell setup but we have to keep remember that this is a 15 min. chart and 15 min. candle close confirmations are not so great, so, if we have to search confirmations from this chart then the perfect 15 min. candle close would be this candle which also ends the hour and the targets are ~$4,700 and if 4.7k breaks then ~$4,500.
$4,500 is the first stronger support which consists of:
- ABC waves: I started to count this from the top
- Different Fibo retracement levels
- The round number itself
- 1H EMA200
- The curve trendline (look at it from previous analysis)
We have pretty clear consolidation area - between those two light blue lines. The upper line marks shoulder tops on the H&S pattern and the lower marks inverted H&S shoulder tops.
The breakout from the consolidation area would be definitely a direction indication.
More favorable is a bearish move (after the mentioned breakout) and if we look at higher timeframes, then there are even more bearish signs:
- We have a rejection from the Fibonacci golden ratio of 62%
- Three Daily candle rejections from the round number $5,000
- On the top, we have a massive bearish Engulfing pattern on the 4H chart
If we start to make breakout above the upper light blue line then the inverted H&S starts to work plus some minor signs more but overall a breakout upwards from the consolidation area can guide us into the recent top and the last target would be $5,500.
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Best regards!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Previous analysis:
There are marked one bigger Head and Shoulders and there are also a bit smaller inverted Head and Shoulders. That says already that it is very difficult to predict precisely how and where the price can go but let's try to guess it anyway.
Head and Shoulder (green lines) pattern were actually triggered yesterday. I made also update and after that, the price falls around to the $4,750, it got a bounce from there and right now the price is started to form another pattern (pattern inside the pattern) Rising Wedge. Rising Wedge is a continuation/bearish pattern and it will trigger after the breakout below the lower trendline. It is also some sort of retest situation - we have a breakout below the H&S neckline (the lower light blue line is the neckline) and now the price retest it. If the break below the Rising Wedge bottom trendline and break below the light blue line has occurred, then we have actually pretty good sell setup but we have to keep remember that this is a 15 min. chart and 15 min. candle close confirmations are not so great, so, if we have to search confirmations from this chart then the perfect 15 min. candle close would be this candle which also ends the hour and the targets are ~$4,700 and if 4.7k breaks then ~$4,500.
$4,500 is the first stronger support which consists of:
- ABC waves: I started to count this from the top
- Different Fibo retracement levels
- The round number itself
- 1H EMA200
- The curve trendline (look at it from previous analysis)
We have pretty clear consolidation area - between those two light blue lines. The upper line marks shoulder tops on the H&S pattern and the lower marks inverted H&S shoulder tops.
The breakout from the consolidation area would be definitely a direction indication.
More favorable is a bearish move (after the mentioned breakout) and if we look at higher timeframes, then there are even more bearish signs:
- We have a rejection from the Fibonacci golden ratio of 62%
- Three Daily candle rejections from the round number $5,000
- On the top, we have a massive bearish Engulfing pattern on the 4H chart
If we start to make breakout above the upper light blue line then the inverted H&S starts to work plus some minor signs more but overall a breakout upwards from the consolidation area can guide us into the recent top and the last target would be $5,500.
Please, take a second and support my idea post by hitting the "LIKE", it is my only fee from You!
Have a nice day,
Best regards!
*This information is not a recommendation to buy or sell, it is used for educational purposes only!
Previous analysis:
Comment:
It is a bit messy but we have a slight breakout from the inverted head and shoulders pattern. Great would be a 1H confirmation above the 5k level but let's see.
Comment:
Now we got 1H candle close above the 5k level, altcoins are on the pump mode and BTC is almost ready to make a breakout upwards from the consolidation area!