Bitcoin - Inverse Head And Shoulders Pattern Still in Progress?!
Hello Traders,
I hope you have been enjoying your weekend so far.
As promised yesterday, here is my daily view on Bitcoin. In the chart above you can that Bitcoin broke its significant trend-line from 2017. It managed to close above the trend-line with a daily close. This was the first indication that more upside in bitcoin can be seen.
With the consolidation, the market has been forming an inverse head and shoulders pattern. With the trend line break (green trend-line neckline) it has confirmed the next move higher. I have drawn for you the pattern on the right how ideally an inverse head and shoulders pattern should look.
The inverse head and shoulders pattern is a trend changing pattern. Especially, the inverse head and shoulders pattern. When a market was in an intact downtrend and possibly formed a bottom, we can see such pattern. It is a reversion pattern, where the bulls take again the market. With the break of the neckline, it has confirmed the pattern. I am looking for a target of the pattern for around $9865.5-$11143.6 areas. The target measuring for an inverse head and shoulders pattern is projected the length of the head to the upside.
As long as bitcoin stays above the important level of $5970, I am expecting the bulls to take over, to at least the 50% Fibonacci retracement ($12913.2). However, keep in mind that the market does not move in one straight line. It moves higher then corrects, moves higher and corrects etc. Which means pullbacks will happen. Anyhow, as long as the market stays above $5970 I am expecting more upside.
2 possibilities:
- First one is the black one (drawn in the chart) we could see a short-term pullback to green neckline before the next leg higher can be seen.
- Or the second one (orange line) Bitcoin rallies to the upside without any significant correction to around 9865.5 before a pullback can be seen
This view will be invalid once it breaks $5970 support
Disclaimer: Trading is about going with the highest probability, nobody is 100% right and we need to protect ourself in case we are wrong. That is why we need to always use a stop-loss when trading. Trade with care. This my current view, and any view present is not a trading recommendation just personal view.
I hope you have been enjoying your weekend so far.
As promised yesterday, here is my daily view on Bitcoin. In the chart above you can that Bitcoin broke its significant trend-line from 2017. It managed to close above the trend-line with a daily close. This was the first indication that more upside in bitcoin can be seen.
With the consolidation, the market has been forming an inverse head and shoulders pattern. With the trend line break (green trend-line neckline) it has confirmed the next move higher. I have drawn for you the pattern on the right how ideally an inverse head and shoulders pattern should look.
The inverse head and shoulders pattern is a trend changing pattern. Especially, the inverse head and shoulders pattern. When a market was in an intact downtrend and possibly formed a bottom, we can see such pattern. It is a reversion pattern, where the bulls take again the market. With the break of the neckline, it has confirmed the pattern. I am looking for a target of the pattern for around $9865.5-$11143.6 areas. The target measuring for an inverse head and shoulders pattern is projected the length of the head to the upside.
As long as bitcoin stays above the important level of $5970, I am expecting the bulls to take over, to at least the 50% Fibonacci retracement ($12913.2). However, keep in mind that the market does not move in one straight line. It moves higher then corrects, moves higher and corrects etc. Which means pullbacks will happen. Anyhow, as long as the market stays above $5970 I am expecting more upside.
2 possibilities:
- First one is the black one (drawn in the chart) we could see a short-term pullback to green neckline before the next leg higher can be seen.
- Or the second one (orange line) Bitcoin rallies to the upside without any significant correction to around 9865.5 before a pullback can be seen
This view will be invalid once it breaks $5970 support
Disclaimer: Trading is about going with the highest probability, nobody is 100% right and we need to protect ourself in case we are wrong. That is why we need to always use a stop-loss when trading. Trade with care. This my current view, and any view present is not a trading recommendation just personal view.
