Bitcoin (#BTC) Head and Shoulders ends current uptrend
On a , Bitcoin marked $4980 as a . If we try to measure pattern, we see that it plays quite well as a neckline. However, the price has already hit this area three times (white arrows), which means that more and more liquidity is taken and support becomes more weak.
This is a short-term trade.
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> 1D RSI remains flat, 1D MACD continues to confirm continued decline. OBV also indicates a declining interest of traders. If we look at BB - Bitcoin remains under BB's Bias line for 5 days.
> What I want to warn you is, BB on 4H chart. Look at the narrow shape of channel. This is a precursor to a significant price movement
> Now let's move to 1H chart and pay your attention to white arrows pointing to the areas of liquidity taken. It could mean that the area sligtly above $5K becomes more weak. On the other hand, can we see the signals of another Bart pattern again? Huge drop down, sideway movement and finally a significant move up but below the previous high.
Summary - H&S idea remains valid. Smaller TF look like Bitcoin could go up in short term. That's why i think that the high of right shoulder hasn't been achieved yet. Regarding to Bitcoin's HF, I think that Bitcoin will see levels below $5K soon.