BTC looks to be indicating a potential breakout from the trend from nearly a month ago.
First off, a quick recap:
A few days ago, I mentioned the bearish logarithmic descending channel (orange lines) that BTC had been trending since April
BTC then looks to have bounced off the logarithmic trend line (dashed yellow lines)
Then a few days ago, BTC began to break out of the channel to form a a new wedge
Now it looks as though BTC has bounced off of the original descending channel and begun to break out of the aforementioned new channel to form what looks to be the beginning of an inverse head and shoulders breakout. If the breakout holds, there is potential to continue upward to near the 50% Fibonacci extension from the all-time high based on the shoulder-neckline length of the inverse head and shoulders pattern (or potentially beyond this if an ascending channel were to occur as I mentioned before).
However, I should note that there has been a bit of continuation bearish hidden continuation divergence forming on RSI and MACD oscillators (to name a few) which may indicate a potential dip before a continuation upward if this turns out to not be a fake out (some more time is needed to be certain). Hence if a break down to below 37K occurs too soon, this indeed might indicate that this is a fake out instead of a break out.
Either way, it looks like a few possible turning points are in order right around the corner. As to how far they continue in the longer term I think still remains to be seen.
And of course, this is not meant as financial advice and is just my opinion. However, please like or comment if you agree or have any thoughts!
First off, a quick recap:
A few days ago, I mentioned the bearish logarithmic descending channel (orange lines) that BTC had been trending since April
BTC then looks to have bounced off the logarithmic trend line (dashed yellow lines)
Then a few days ago, BTC began to break out of the channel to form a a new wedge
Now it looks as though BTC has bounced off of the original descending channel and begun to break out of the aforementioned new channel to form what looks to be the beginning of an inverse head and shoulders breakout. If the breakout holds, there is potential to continue upward to near the 50% Fibonacci extension from the all-time high based on the shoulder-neckline length of the inverse head and shoulders pattern (or potentially beyond this if an ascending channel were to occur as I mentioned before).
However, I should note that there has been a bit of continuation bearish hidden continuation divergence forming on RSI and MACD oscillators (to name a few) which may indicate a potential dip before a continuation upward if this turns out to not be a fake out (some more time is needed to be certain). Hence if a break down to below 37K occurs too soon, this indeed might indicate that this is a fake out instead of a break out.
Either way, it looks like a few possible turning points are in order right around the corner. As to how far they continue in the longer term I think still remains to be seen.
And of course, this is not meant as financial advice and is just my opinion. However, please like or comment if you agree or have any thoughts!