Bitcoin has become extended the last few days while forming a bearish reversal pattern H&S. The break of the 8ema with large bear volume was the first red flag. Seems to be forming the right shoulder with the 8ema acting as resistance. Its is also notable that previous market structure of pendant is also acting as resistance above the price action of the last few days. A break of the neck line will be short signal with 6800 acting as first support level.
Note
Looks like the 8ema hasn't played a major role in resistance as it was broken next candle but the bearish h&s reversal is still in play for now.Trade closed: stop reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.