BTC has been moving inside a channel since early September and it's still bound to it.
The upper trend-line of the channel has been touched and it was rejected with a rather big volume.
Here are the bearish signals that support a downward movement to around 10.8K:
- Head and Shoulders pattern on 4H
- Considerable divergence on 4H doing its dirty work
- RSI below 50 and pointing down
- Stochastic gaining bearish momentum
- CME gap around 11K pulling the price down like a magnet
This is the third time in this channel that a H&Sh with these characteristics occurs and every time BTC touched
the lower trend-line. The marked yellow area is the target for our short position.
DO YOUR OWN ANALYSIS BEFORE ENTERING A POSTION
Comment:
The CME gap is closed. I repeat, the CME gap is closed!
Trade closed manually:
This idea is expired. The Head & Shoulders pattern didn't work out and the price decided to move in range which means an accumulation is cooking. Here's a new idea:
