BTC appears to be creating a classic head and shoulders pattern off of Ehlers' MA cloud on the daily price chart. Price has bounced off of both the Daily MA cloud and the 4H MA cloud. If this pattern confirms, it may project BTC above the 10K range.
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More info can be found on this rare continuation head and shoulders pattern here:peterlbrandt.com/do-continuation-head-and-shoulders-patterns-really-exist/
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Possible target on confirmation is the $9500 area which correlates to the reverse fibs on the recent continuation H&S breakouts before a large correction.Note
Price has broken through with a good momentum.Note
Recent news of the tether hack has brought a volatile price swing to the downside. I am remaining bullish until we get a close in the MA cloud. If we get a close in the MA cloud, a possible edge 2 edge scenario could play out and bring price to the 7200 level.
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Back on track:Note
Watching to see what price does after this white doji, could possibly begin a retrace into the cloud. Note
A bullish 4H candle is forming after the doj. It appears price will continue upwards.Note
BTC slowing momentum on 4H but still looking bullish since it's above the cloud.Note
I am forming a bearish opinion on BTC. On the daily we can see a doji and then a momentum move to the downside. On th 4H we have a possible edge to edge scenario that could bring price to the 7600 area and below if we close in the cloud, which seems likely at this point.Note
After the next 4H candle has formed with a strong bullish momentum to the upside, it appears price want to head towards 10K. Back on the bull train.Note
Price making its way up.Note
Price has reached the 1.618 reverse fib level. Watching to see how price reacts here.Note
BTC powered though the 1.618 fib area, has retraced to it and bounced off of it / MA cloud creating a doji. Sentiment is Bullish.Note
With price retracing and closing in the 4H cloud, sentiment is bearish. Price will most likely play out this edge to edge scenario and attempt to retest the Daily MA cloud around the 8000 area.
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BTC has dipped into the 4H MA cloud and bounced out with a pair of good 4H momentum candles. Sentiment is bullish.Note
Sentiment still bullish with the bounces in and out of the 4H MA cloud.Note
Bitcoin has made a historic ~$3,800 inverted hammer. An Inverted hammer is typically an indication of a price change, and with the daily price being so distant from the MAMA red edge, I am bearish on Bitcoin.I am expecting bitcoin to retrace to possibly the 14000 area which is a good psychological round number. I will be watching price action around that area for a potential reversal before continuing to make new highs.
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Price has retraced to the 1400 area and bounced off of the 4H MA cloud and is creating good momentum candles to the upside. Sentiment is bullish, watching for price to react around 20k level.Note
Price has barley touched 20k and and is now heading towards the MA cloud for another retest. Watching to see how price reacts around the MAMA, if we get a close or high momentum move into the MA cloud, next checkpoint could be ~16,500.Note
With the 4H closes in the MA cloud, 16,500 is a possibility. I'm bearish until price closes back out of the MA cloud.Note
Price on the way to FAMA edge ~16,500.Note
Bitcoin has had a violent dip past the 16500 range all the way to the daily MAMA ~14000.I believe this correction is over and bitcoin will be making its way higher now due to one main reason, very rarely do I see a daily bar with no wick on the open side. Statistically 95% of the time a wick will form by the time of close.
This will be interesting to watch with it's No. 1 competitor Bitcoin Bash was listed on Coinbase tonight.
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Price has pierced into the cloud with high volatility. If we get a few closes in the cloud, next checkpoint will be ~9500.Note
Note: Price did in fact come back up to ~18k to create a daily wick before moving lower. Statistic is solid.Note
Ichimoku Cloud view. Price has just hit the Kijun or 50% fib on the daily chart. Typically a good zone for buy orders. If we close below the Kijun I will be bearish on BTC.Note
Price still in the cloud around the Kijun or 50% fib area. Starting to average in positions here, watching to see how price reacts at this zone.Note
2nd bounce off of Kijun, sentiment is bullish for now. Note
Still bullish with price bouncing out of Ehlers daily MA cloud.
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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.