The setup seems to be almost perfect, after a big drop from 145 up to almost 35, making the size of the H&S very good. This would mean, similar to ETH, that would should see a correction coming weeks, towards 50/55. The right shoulder can take all kind of shapes, so it's guessing on how it could go from now on. Even a break of last weeks high and then drop is still possible. Think the max for a move up and keeping the H&S alive is around 67.
Preferably, the right shoulder has to be smaller in size and time, so i would like to see it stay above the 50 from now on. So if we drop, same as ETH, it would also fall in to place for my bigger picture plan for Bitcoin. Where i want to see one more good retest of the 7K zone.
On the left we can also see, that we had a somewhat similar shape for an inverse H&S then. But we never got that right shoulder, not even close, instead we got like an upwards triangle from which a massive pump followed from 65 to 100. Lets face it, it's crypto :).
On the right we can see the same shape as ETH, a sideways channel which looks like a correctional move. The support zone i see short term is at 57/57.5. As long as that holds, bulls might be safe short term. If that breaks, think we need to see assume bears will attack the big support around 55 again.
Previous analysis:
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So channel broke and tested the neckline again, which is not good but so far it's holding and it could keep on holding. The neckline really has to break before believing in the H&S. I am saying this, because during a strong uptrend, H&S patterns can turn into bear traps.
where is the right shoulder on your left H&S? i dont see it correcting there..its just a normal uptrend, not an H&S. Hopium Hopium Hopium everywhere
botje11
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@Blockshame if you would read what I say maybe another time, you would understand what I mean with it. Think it’s quite clear even
Blockshame
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@botje11, that doesnt justify your left H&S pattern. There is no H&S pattern on the left. but you drew it like it was one.. and now you mean we are doing similar movements at the moment. The last one as just a normal uptrend without a "right shoulder correction". It just went through.
And NOW, its a complete different pattern. Different movements. You cannot compare them with each other, because they are not similar.
The current one could really play out as an H&S pattern, even when i dont think so for myself.. but there is a possibility for that. true
botje11
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@Blockshame you still don’t understand my message here. To me it’s clear but maybe i have not been clear. I am not showing the h&s there on the left because it’s an h&s. I have drawn it, because at the left side of the RIGHT shoulder, we are at the same spot as we are now. So my message is, seeing a right shoulder getting formed is what usually happens, but year ago I’d dit NOT happen, we simply made a flag/triangle. So instead of just waiting for the right shoulder to form, my message is, that if we don’t really drop, but form a bull flag or triangle or whatever, it could mean the consolidation/correction is already finished and we continue to go up.
botje11
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@Blockshame , I read my post again, I do not understand how it’s not clear what my message here is!
On the left we can also see, that we had a somewhat similar shape for an inverse H&S then. But we never got that right shoulder, not even close, instead we got like an upwards triangle from which a massive pump followed from 65 to 100. Lets face it, it's crypto :).
Blockshame
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@botje11, ok. lets end this :D i just dont like the fact that you compare the left side with the actuall pattern. For me its abolutely NOT the same, i would personally never compare them. Makes no sense to me.
Im usually trading only with patterns and with RSI, nothing more. Thats why i dont agree to this. I have an eye for patterns, like blind people can hear much better than others.
Lets see...:)
Sherem
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I concur, more or less!
UnknownUnicorn1375590
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Good find. Gonna follow.
botje11
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@spin_cycle thank you, hope it’s helpful :)
J05B
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it seems to ignore the right shoulder, just like your example on the left. This turned out to be a very nice play.