BTC Bearish rising wedge, H&S & 200WSMA

21 Apr 2023

BTC maybe completed the head of a potential but highly likely Head and Shoulders.

There are a few good supports on the way but ultimately, Im looking to see what happens at the 200 weekly MA as prior to BTC rocketing through it last time, it had never spent this long under it in its entire history and so its a very important level to test and flip into support for bullish continuation and liquidity onboarding.

If it doesn't hold, there are still some decent supports below but the target for the H&S is below it right now. H&S dont always play out and reach their technical targets but with high volume rejections, can be powerful predictors of downside.

From an EW perspective, the top if it is considered wave 5 ended with bearish divergence and a bearish rising wedge which is typical prior to starting a corrective ABC move. An ABC move is the simplest from of correction if this is indeed what this is with its basic 5-3-5 structure. Too early to say for sure. Wave B can typically retrace up to 382 of wave A and so, if wave A is complete or close, the upside wont be substantial prior to heading back down.

Will elaborate further as things evolve but ive been waiting for the 200 WSMA to make it back on the price for a while now and think it will be revisited soon.