Bitcoin: Head & Shoulders

7 Nov 2017

A 'Head & Shoulders' is currently being formed in BTC/USD, it can be clearly seen on H4. This is a counter-trend formation, which may indicate the beginning of a retracement in the asset. The formation bill be confirmed once the line of the 'Neckline' has been violated, which is approximately at $6940. Once this level of support has been violated, it is usual for the asset to pullback to the same area, before resuming the bearish trend. The formation has a height (H) of $670 and it's expected that this distance will be replicated downwards once the neckline is broken, so it could go down to the support area indicated in the image, before continuing it's primary bullish trend.