Inverse head and shoulders everywhere. Next stop 7.8K then 10K!
Hello Traders,
As you recall from my previous analysis, I set my target to 7.2K and it reached my target way earlier than I anticipated.
Looking at the daily chart, Bitcoin just broke 6.8K resistance level and had an explosive rally up to mid 7.4K. So the question is where are we heading from here?
This is just purely based on my prediction and technical analysis, so please feel free to post comments if you have different ideas :)
1) After this huge pump, Bitcoin should go up to 7.8K in next few hours/days. (this is the target inverse head and shoulders pattern breakout) This level acted as both resistance and support, and I think it will act as resistance this time around. Another reason that I think we will see minor dip after hitting 7.8K level is the pink down trendline. Technical speaking, we are still in bear market unless Bitcoin manages to break the pink line.
2) There may be a possibility of inverse head and shoulders formation, and I believe that this will be the most likely scenario. If you look at the bear market from mid may to June 29th, we see a blue down trendline which indicates the support level. In order to continue this rally, Bitcoin needs to form trendline so we can have some insightful information. (for now, I just drew a symmetrical triangle for reference). If Bitcoin hits 7.8K, there will be a high possibility of finding support at either 7.5K or 7K and this will allow us to draw the first trendline.
3) If Bitcoin manages to break 7.8K (inverse head and shoulders pattern breakout), then the next stop is 10K (inverse H&S breakout target), which is the psychological resistance for most of the Bitcoin investors. This will be just my speculation, but I will not be surprised that Bitcoin will hit 10K before August 10th, and SEC decision on Bitcoin ETF will determine if it can breaks 10K resisntance. Of course, there are many factors that can drive the price of Bitcoin, but I believe that there are a lot of rooms to grow this year.
Happy trading!
As you recall from my previous analysis, I set my target to 7.2K and it reached my target way earlier than I anticipated.
Looking at the daily chart, Bitcoin just broke 6.8K resistance level and had an explosive rally up to mid 7.4K. So the question is where are we heading from here?
This is just purely based on my prediction and technical analysis, so please feel free to post comments if you have different ideas :)
1) After this huge pump, Bitcoin should go up to 7.8K in next few hours/days. (this is the target inverse head and shoulders pattern breakout) This level acted as both resistance and support, and I think it will act as resistance this time around. Another reason that I think we will see minor dip after hitting 7.8K level is the pink down trendline. Technical speaking, we are still in bear market unless Bitcoin manages to break the pink line.
2) There may be a possibility of inverse head and shoulders formation, and I believe that this will be the most likely scenario. If you look at the bear market from mid may to June 29th, we see a blue down trendline which indicates the support level. In order to continue this rally, Bitcoin needs to form trendline so we can have some insightful information. (for now, I just drew a symmetrical triangle for reference). If Bitcoin hits 7.8K, there will be a high possibility of finding support at either 7.5K or 7K and this will allow us to draw the first trendline.
3) If Bitcoin manages to break 7.8K (inverse head and shoulders pattern breakout), then the next stop is 10K (inverse H&S breakout target), which is the psychological resistance for most of the Bitcoin investors. This will be just my speculation, but I will not be surprised that Bitcoin will hit 10K before August 10th, and SEC decision on Bitcoin ETF will determine if it can breaks 10K resisntance. Of course, there are many factors that can drive the price of Bitcoin, but I believe that there are a lot of rooms to grow this year.
Happy trading!
Comment:
Bitcoin is holding very strong at 7.4K. Bollinger band is starting to narrow which is the indication for up/down action.
The breakout from red pole is 7.8K (bull break) or 7.1K (bear break). To me, it just seems to be more logical to have bull breakout, confirm 7.8K as the resistance, and accumulate/consolidate for red trendline breakout.
The breakout from red pole is 7.8K (bull break) or 7.1K (bear break). To me, it just seems to be more logical to have bull breakout, confirm 7.8K as the resistance, and accumulate/consolidate for red trendline breakout.
Comment:
Bear breakout from the red trendline. There might be another bear flag being formed and looks like Bitcoin will find support at blue trendline.
Comment:
Comment:
Bears are defending 7.5K, while Bulls are consistently getting higher lows.
We can expect some price action in next 24 hours.
We can expect some price action in next 24 hours.
Comment:
Bitcoin keeps getting higher lows while resistance remains at $7500.
1) $7268
2) $7353
3) $7436
This is usually a very bullish signal and there is 70% chance that we see bull breakout today (30% bear breakout).
Bolliger band is narrowing down in 3-hour chart, and blue red support lines already crossed.
1) $7268
2) $7353
3) $7436
This is usually a very bullish signal and there is 70% chance that we see bull breakout today (30% bear breakout).
Bolliger band is narrowing down in 3-hour chart, and blue red support lines already crossed.
Trade closed: target reached
As I mentioned previously, we need to see upward trendline and it seems like red line I drew in the chart might act as a diagonal support. If that is the case, I expect
1) find support at 7.1K. Bitcoin should touch middle line of Bollinger Band which will be around 7.1K-7.2K
2) Pump to blue line: 7.8K
3) Consolidation/accumulation in order to cool off the RSI
I feel more comfortable playing bear now as RSI is oversold and MACD is about to crossover in favour of bear. However, this will be very risky and do with your own risk.