Bitcoin forming right shoulder of a head and shoulder formation
Hello Traders,
Here we see the 4 hour chart of Bitcoin with an interesting development.
First, we see a small inverted head shoulder formation with a target of around 65000. That is the old top. At the same time, it seems that we are no now forming the right shoulder of a much larger head shoulder pattern.
The right shoulder of this pattern should not be higher than the head. So it is first possible that we reach almos the old all time high and then drop to the neckline.
It is still too early now but we need to monitor the development closely because if Bitcoin drops through this neckline a much lower target is in sight.
This is purely a hypothesis. This is how it could go if Bitcoin follows the pattern.
On the other hand, if Bitcoin meets the target of the inverted smaller head shoulder formation and we rise above 65000 then the pattern expires and Bitcoin can move further up. towards +100,000 usd.
Currently, Bitcoin volume lags on increases so that is always suspicious and something to keep in mind.
It will be interesting to see how this possible pattern develops further.
So I'm short term bullish but if we don't cross the all time high then I will be bearish. Bitcoin could then form a double top or the right shoulder of the head and shoulder pattern further. Things can then go quick because it means we failed for a 4th time to stay above 60.000 usd.
We are still in a good month for Bitcoin historically so that causes the odds for long. Just keep an ey on the general development of Bitcoin and zoom out for a clear view on the trend.
Here we see the 4 hour chart of Bitcoin with an interesting development.
First, we see a small inverted head shoulder formation with a target of around 65000. That is the old top. At the same time, it seems that we are no now forming the right shoulder of a much larger head shoulder pattern.
The right shoulder of this pattern should not be higher than the head. So it is first possible that we reach almos the old all time high and then drop to the neckline.
It is still too early now but we need to monitor the development closely because if Bitcoin drops through this neckline a much lower target is in sight.
This is purely a hypothesis. This is how it could go if Bitcoin follows the pattern.
On the other hand, if Bitcoin meets the target of the inverted smaller head shoulder formation and we rise above 65000 then the pattern expires and Bitcoin can move further up. towards +100,000 usd.
Currently, Bitcoin volume lags on increases so that is always suspicious and something to keep in mind.
It will be interesting to see how this possible pattern develops further.
So I'm short term bullish but if we don't cross the all time high then I will be bearish. Bitcoin could then form a double top or the right shoulder of the head and shoulder pattern further. Things can then go quick because it means we failed for a 4th time to stay above 60.000 usd.
We are still in a good month for Bitcoin historically so that causes the odds for long. Just keep an ey on the general development of Bitcoin and zoom out for a clear view on the trend.
Comment:
Please not that with the smaller inversed H-S we have formed the 1st leg of the AB-CD pattern. We are now forming the second leg. Target +61000.
Comment:
Hello traders,
Pelase watch 54700. It is the broken neckline (of the small inverse H-S) where we see now a RE-TEST forming.
If price goes below it we are on our way with the bigger H-S right shoulder.
Pelase watch 54700. It is the broken neckline (of the small inverse H-S) where we see now a RE-TEST forming.
If price goes below it we are on our way with the bigger H-S right shoulder.
Trade active:
Traders, this scenario is still intact as long as we stay above the neckline of the inverted head and shoulder formation. This is for the target of the inverted H-S formation.
The bigger H-S formation isalso valid when price does not rise above the Last top 64.854 USD.
The bigger H-S formation isalso valid when price does not rise above the Last top 64.854 USD.
Comment:
Hello traders,
Please keep a close eye on Bitcoin's roadmap as it is hugely important for ALT COINS and the rest of the crypto market.
I have a link here to Bitcoin's Roadmap.
We are still caught between Target 1 and Support 1 with Bitcoin. We'll have to wait and see how Bitcoin develops further but in the meantime this is good news for ALT coins. As long as BTC moves wonky the ALTS can continue to rise but always keep an eye on this chart to see exactly where we are! Trade safe and use always stops!
Please keep a close eye on Bitcoin's roadmap as it is hugely important for ALT COINS and the rest of the crypto market.
I have a link here to Bitcoin's Roadmap.
We are still caught between Target 1 and Support 1 with Bitcoin. We'll have to wait and see how Bitcoin develops further but in the meantime this is good news for ALT coins. As long as BTC moves wonky the ALTS can continue to rise but always keep an eye on this chart to see exactly where we are! Trade safe and use always stops!
Also know that failed H-S patterns tend to give a sharp reaction in the opposite direction. There are traders just trading the failed general patterns with succes. It does not matter what you like to trade as long as the risk reward is good and you have money management in place with good stops.