Possible market turnover lead by the IOTA/BTC pair
I'll make this short and sweet and get straight to the point. The IOTA price is about to complete a big complex head shoulder top against Bitcoin .
There is not much difference between complex and "normal" head shoulder tops except in their appearance. If you add a couple of shoulders to the left and right of a simple head shoulder top, as in this case, you get the complex version of the chart pattern.
In theory, a complex head shoulders top is a reversal pattern. If the crossing of the neckline is waited for, it is also in practice a very reliable indication of a falling price. From a purely statistical point of view, only 8% of the formations fail the 5% criterion thereafter.
However, the neckline has not been breached yet. A breakthrough should be waited for in any case.
Normally, a minimum price target can be calculated for this chart pattern by measuring the height of the formation and projecting this distance downward from the neckline. However, this makes little sense in this case, as it would result in a price target below 0 sats .
Accordingly, a retest of the previous low at just under 850 sats would be the more appropriate price target.
This price target is about 60% below the current price. However, due to the correlation in the altcoin market, it is unlikely that such a sharp price drop would affect IOTA alone.
It might therefore be worth keeping a close eye on this development.
There is not much difference between complex and "normal" head shoulder tops except in their appearance. If you add a couple of shoulders to the left and right of a simple head shoulder top, as in this case, you get the complex version of the chart pattern.
In theory, a complex head shoulders top is a reversal pattern. If the crossing of the neckline is waited for, it is also in practice a very reliable indication of a falling price. From a purely statistical point of view, only 8% of the formations fail the 5% criterion thereafter.
However, the neckline has not been breached yet. A breakthrough should be waited for in any case.
Normally, a minimum price target can be calculated for this chart pattern by measuring the height of the formation and projecting this distance downward from the neckline. However, this makes little sense in this case, as it would result in a price target below 0 sats .
Accordingly, a retest of the previous low at just under 850 sats would be the more appropriate price target.
This price target is about 60% below the current price. However, due to the correlation in the altcoin market, it is unlikely that such a sharp price drop would affect IOTA alone.
It might therefore be worth keeping a close eye on this development.