Just posting this more as a question of competing patterns. There have actually been multiple head-and-shoulder fractals within this giant coiling wedge. The wedge itself doesn't give direction, but does point toward possible future momentum. The question, though is whether it will follow the target of the largest H&S pattern, which looks to me to be between...
Just looking at the formations, seems a bull flag looks a bit like a small inv head & shoulders. Measuring it out, if it plays to the top of the H&S, and the previous top becomes support then the bull flag plays out .. here are the targets and potential 50% gain (assuming it stops going up there).
- It has recently been moving positively in dollars even...
Breaks of support and resistance tend to show significant moves even if they don't stay there. After it breaks out of resistance or crashes through support the same trend line changes -- resistance becomes support, and support becomes resistance.
The H&S speaks for itself I think.
Now the lines, though. They're a weird thing I'm trying out ... I've noticed sometimes fib zones build before topping out, so I tried to see if I could get any support and resistance levels to match the current trends of support and resistence. The current fib zones are where BTC might retrace if it hits 23500.
Just what it looks like to me. The smaller H&S looks a bit ugly, but if it can be used to predict a floor then that would ends up below the baseline of the larger potential H&S ... which seems like a better situation than bouncing at 7450 and completing a right shoulder. That would be "look out below."
Widening trend lines seem like they'll increase volatility on moves, not to mention I'm betting its gone too fast to build strong support on the way up. I think profit takers will jump in within the next few days, the question is how much gas is still in the tank before then and how much "normie" money might come back in now that we're over the 10K psychological barrier.
Coming up on the LTC halving we certainly see growing interest as well as LTC leading the market. I worry that it'll stub it's toe on BTC however and a pullback there, perhaps in the mid 9K will stop LTC market growth and prompt profit-taking.