Deftsuo

Keep an eye on this potential Inverse H&S forming on BTC.

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
Taking a look at the XBT/USD chart here, we can see Bitcoin is currently on a small parabolic rise from 8.2k to 10.2k. However, I am going to present a potential scenario which I think would be overall quite healthy for the macro-trend and give better validation that BTC /USD is really poised for another cycle up to 20k, 30k, and so on.

-Flashing back to September of 2019, we can see that when Bitcoin broke the support at 9.5k, price rapidly dropped toward the the higher 7k region before finding a base of support along the daily 377 EMA in Grey.
-Price consolidated along this daily 377 EMA in Grey for about a month, before bear-trapping down to $7300 before eventually rocketing up over 50% to 10k+. However, this entire pump would end up getting faded; and price crashed back down to new local lows around 6.4k.
-Since then, Price has been on a parabolic rise from 6.4k->10.2k (and on a smaller parabolic rise from 8.2k->10.2k.) However, price is contending with the same area that rejected it back in October when price pumped 50% from the $7300 region.
-If this pattern is to play out, price will see one more drive lower down toward the high 7k/low 8k region where it hopes to base on the daily 377 EMA in Grey once more to confirm a right-shoulder before eventually heading back up.

tl;dr: I think price will see one more flush lower to complete the right shoulder of the inverse H&S ; which at the same time, cleanse out the longs and fomo'ers, reset market sentiment, reset funding, reset OI, and structurally speaking, this would be a textbook inverse head and shoulders for a macro-reversal pattern.

-This is not financial advice. Always do your own research and own due-diligence before investing and trading, as for investing and trading comes with high amounts of risk. I am not liable for any incurred losses or financial distress.

Comments

holy crap man, cant get more spot on!
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