BTC has been moving inside a channel since early September and it's still bound to it. The upper trend-line of the channel has been touched and it was rejected with a rather big volume.
Here are the bearish signals that support a downward movement to around 10.8K:
- Head and Shoulders pattern on 4H - Considerable divergence on 4H doing its dirty work - RSI below 50 and pointing down - Stochastic gaining bearish momentum - CME gap around 11K pulling the price down like a magnet
This is the third time in this channel that a H&Sh with these characteristics occurs and every time BTC touched the lower trend-line. The marked yellow area is the target for our short position.
DO YOUR OWN ANALYSIS BEFORE ENTERING A POSTION
Comment
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The CME gap is closed. I repeat, the CME gap is closed!
Trade closed manually
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This idea is expired. The Head & Shoulders pattern didn't work out and the price decided to move in range which means an accumulation is cooking. Here's a new idea: