Masterful Analysis — Repetitive Patterns — BITCOIN! (BTC) >=D
Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! Looking at the four hour chart, you can see that BTC is forming another bull flag formation. Price is continuing it's ascent toward the 200 EMA (in purple) and a breakout of this flag should send BTC up to test it. So, since bullish patterns are continuing to develop, the short term bias remains to the upside. If we do see a break above the 200 EMA, that will put a test of the top of the downtrend channel (in black) in play. Obviously, that will be a do or die technical juncture for BTC, given the continuous overall weakness that we've seen in the crypto space. With that said, if BTC gets up to the top of the channel, and fails, it would likely be a catastrophic failure, which would send BTC significantly lower. If BTC confirms above the downtrend channel, that would be a very significant bullish development. For now, we appear to be moving back to the top of the channel, to test it as resistance.
I want to draw your attention to the inverse head and shoulders pattern (in green.) As you know, I never took it down from my chart, despite the fact that so many people chastised the fact that it failed on the initial breakout. The reason that I never took it down, is because I fully understand that it is still valid. With that being said, I want to draw your attention to the head and shoulders formation, that was made at the all time high. You can see that a big head and shoulders formed (in red) and then a formation that surpassed the height of the right shoulder was formed (in purple.) There isn't much literature on this, it is a move known to some as a "head test." This is when there is a throwback move, that tests the height of the head of the original formation. If the head were to be surpassed to the upside, then the head and shoulders pattern would have been technically negated. As you can see, that never happened, and a breakdown ensued. This technical pattern is what allowed me to recognize that the original head and shoulders, at the all time high, was still valid, and that much lower prices were still to come.
If we fast forward to the more recent BTC formations, you can see that after the inverse head and shoulders pattern (in green) was formed, we have a very similar "head test" move, in which a throwback to the head has occurred from the neckline, surpassing the depth of the right shoulder, but not the depth of the head. This formation is strikingly similar to what occurred after the all time high head and shoulders. So, if history repeats itself, we could see a retest of the neckline, and then FINALLY a real breakout of the inverse head and shoulders pattern. With that being said, there are still several key resistance levels in the way. Namely, the top of the downtrend channel, the rising green trendline, and the neckline resistance of the inverse head and shoulders pattern. Just to be clear, I'm not saying that it's a certainty that we will reach the neckline of the inverse head and shoulders. I'm just showing that it's a very real possibility. However, it will depend on BTC's ability to surpass these key levels along the way. For now, let's see if we can surpass the 200 EMA, to test the top of the downtrend channel. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
I want to draw your attention to the inverse head and shoulders pattern (in green.) As you know, I never took it down from my chart, despite the fact that so many people chastised the fact that it failed on the initial breakout. The reason that I never took it down, is because I fully understand that it is still valid. With that being said, I want to draw your attention to the head and shoulders formation, that was made at the all time high. You can see that a big head and shoulders formed (in red) and then a formation that surpassed the height of the right shoulder was formed (in purple.) There isn't much literature on this, it is a move known to some as a "head test." This is when there is a throwback move, that tests the height of the head of the original formation. If the head were to be surpassed to the upside, then the head and shoulders pattern would have been technically negated. As you can see, that never happened, and a breakdown ensued. This technical pattern is what allowed me to recognize that the original head and shoulders, at the all time high, was still valid, and that much lower prices were still to come.
If we fast forward to the more recent BTC formations, you can see that after the inverse head and shoulders pattern (in green) was formed, we have a very similar "head test" move, in which a throwback to the head has occurred from the neckline, surpassing the depth of the right shoulder, but not the depth of the head. This formation is strikingly similar to what occurred after the all time high head and shoulders. So, if history repeats itself, we could see a retest of the neckline, and then FINALLY a real breakout of the inverse head and shoulders pattern. With that being said, there are still several key resistance levels in the way. Namely, the top of the downtrend channel, the rising green trendline, and the neckline resistance of the inverse head and shoulders pattern. Just to be clear, I'm not saying that it's a certainty that we will reach the neckline of the inverse head and shoulders. I'm just showing that it's a very real possibility. However, it will depend on BTC's ability to surpass these key levels along the way. For now, let's see if we can surpass the 200 EMA, to test the top of the downtrend channel. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Komentar:
Here's where I gave you the inverse head and shoulders pattern.
Komentar:
This is where BTC was trading above 13,600, and I warned of a collapse to at least 9,000.
Komentar:
The flag has broken to the downside, as price retraces to test the 50 EMA, the 200 EMA, and the 78.6% retrace for support. All three of those levels are converging in the same area, which will increase that level as support. If these levels are broken, some violent continuation selling could ensue, as major support would effectively be lost. If they are held, that would be a very bullish sign, and a retest of the top of the channel would still be in play.