Bitcoin Head and Shoulders
After recently peaking at around the 66K level, Bitcoin retracted back to 41K, where it is hitting a critical Support level. If this holds it may reconsider a rally starting here, however the Head and Shoulders pattern looks like a text book H&S, so it could go down as far as 30K where it will test another critical support level.
It hit 55K with weakening momentum, pierced the ribbon below this level and entered a bear market. Technically it is still there and unless the bleeding stops and the bulls step up this will continue.
The volume is still looking normal, not like the capitulation volume we saw on may last year when it crashed from 58K to 35K.
So far the direction is Bearish and I won't open a position here until I see a confirmed support and the indicators coming out of the oversold area and signs of positive momentum.
Let the indicators take the emotion out of the trading.
After recently peaking at around the 66K level, Bitcoin retracted back to 41K, where it is hitting a critical Support level. If this holds it may reconsider a rally starting here, however the Head and Shoulders pattern looks like a text book H&S, so it could go down as far as 30K where it will test another critical support level.
It hit 55K with weakening momentum, pierced the ribbon below this level and entered a bear market. Technically it is still there and unless the bleeding stops and the bulls step up this will continue.
The volume is still looking normal, not like the capitulation volume we saw on may last year when it crashed from 58K to 35K.
So far the direction is Bearish and I won't open a position here until I see a confirmed support and the indicators coming out of the oversold area and signs of positive momentum.
Let the indicators take the emotion out of the trading.
