BTC Head and Shoulders (high risk of bull trap and reverse)

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
Many credible chartists have drawn this head and shoulders pattern. It is a great reversal figure and by far works out incredibly precise. The shoulders are equal to almost a dollar. But it is TOO GOOD TO BE TRUE and you have to be very careful trading it's breakout. Many traders will be entering their long posistions with Limit order after 6850 break out and it is very possible that the whole pattern plays out and reaches 7450, but I consider 6850 to 7500 a very high-risk trade. Make sure to use Stop losses and DO NOT Overleverage your trade in this zone. The trend can be reversed any minute, but logically it has to go over $7000 to collect the stop-losses of the SHORTS and attrackt more LONGS into the "TO-the-MOON" fest.
Comment: 7500 target reached. Waiting for the retracement between 7150 (high chance) and 6950 (low chance) Short is not recommended.
Comment: Current situation. Price 7419. I am expecting the price to go higher (7800-8100), but this is very risky trade to go LONG now. It might still retrace down to 6800, but too many traders expect to BUY there, so there is no reason for market makers to go down there to bring everybody on the boat.
Also breaking through 7800 will create a lot of liquidity by means of short stop-losses and liquidations as many traders SHORTed 7200-7500 levels.
I am LONG from 7347 (missed correction to 7250), but use small amount and will be ready to buy lower if we go there. Use low leverage and small order as it IS A RISKY TRADE.


Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out