Rashad
Short

Head and Shoulders caused BTC to fall

BITSTAMP:BTCUSD   Bitcoin / Dollar
468 4 7
After the head and shoulders pattern was formed, BTC crossed below support at $416. BTC has continued to move down and has already broke psychological support at $389. There is a downward channel in both BTC and the stochastic indicator. Look for more downside ahead in the SHORT TERM

Where to look for a Bottom?
1. Stochastic continues trending into the oversold range which indicates strengthening down trend. While in this region, a signal cross forms a buy signal. Then both K and D lines move over 20.
2. A buy signal forms in the stochastic indicator which breaks it out of the downward channel. This combined with rising prices that break the resistance line in BTC's downward channel.
3. For a better conformation of more uptrend, look for both BTC to break the resistance line in the downward channel and bullish stochastic signals.
4. Look for DOJI's followed by higher highs. This may suggest a coming reversal of this downtrend.

I would like to disclose that although in the short term I am bearish on Bitcoin , in the long term I am very Bullish and very curious what kind of price rally we will see at the Bitcoin bowl.
Maddie
2 years ago
Very easy to post this after the H&S is formed hehe ;p
In BTC H&S's have an real outcome of 60/65%

What's your opinion about the broken red line i'm very curious :)
Reply
Rashad Maddie
2 years ago
I believe the resistance line in the downward channel got broken due to the formation of a bullish symmetrical triangle. This makes sense as CCI is showing a bullish cross on this time frame, and is trending bullish as well. Considering Stochastic is now very close to being oversold, I will be looking for a buy signal as the earliest indication I will use for coming uptrend. I will also be looking for an EMA crops. I built a chart explaining all of this here:
Bullish symmetrical triangle formed on BTCUSD. Over 400 soon!
Reply
Rashad Rashad
2 years ago
*EMA cross not crops... :D
Reply
Alphaoptions
2 years ago
Unusual settings on the Stochastic. Any particular rationale?
Reply
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