Traders, here we are looking at the 2 hour chart of Bitcoin. Clearly the head shoulder formation can be seen. If BTC breaks through the neckline we could go much lower with a target of 43.000 where is strong support waiting.
Another scenario is that BTC froms a falling wedge and that in turn is Bullish. This would invalidate the H & S pattern and you could see a very strong move to the upside. Failed patterns see often sharp moves in the opposite direction.
Currently, it is a matter of waiting to see how this structure continues to form. As long as Bitcoin is in this state, the rest of the coin market will be nervous.
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I would like to see a positive RSI divergence in the D and 4H time frame. This would be a nice signal the downtrend would reverse, See attached screenshot. Support in the RSI is also broken. See screenshot
Trade active
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The pattern is still active only we have now formed a newer and larger H-S pattern. See thee latests post.
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I think we are going lower again soon. We are forming an inside bar on the D timeframe. This is bearish in a dwontrend.
Support on RSI broken. Now wait until targets are hit or wait for a positive divergence in the RSI. In the downtrend we see volumes rising that is bearish unless we get a sudden spike. Sudden spikes can mark a temp. bottom.
mi1994
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😂 just buy and get ready for fly
Ether2020
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@mi1994, indeed, if the pattern fails we could see a short squeeze. Things can go very fast with this volatility. Good stops, targets and risk control essential. Or... don't trade and just buy it and hold it for some years. That will give you profits without even looking at your screen, succes guaranteed!