(!) Bitcoin 2x Inverse Head & Shoulders ((1)55% profit potent.)
Updated
People have been wish-ful-thinkingly seeing a very early inverse H&S on Bitcoin for some time now, but that very inverse head & shoulders really seems to be forming that last shoulder. Given the difference between the left shoulder and the head being around 
4K, and the neckline around $11,5K – this would give us a target of $15,5K for this inverse H&S.
Note that if you want to trade this inverse H&S and want to do it by the book, you wait until break-out confirmation above neckline 1. Alternative entry points are when price bounces back after that initial break-out, but those are more complex and require more patience. Volume might also be massive when such a break-out occurs, so who knows BTC doesn’t even go for a retesting of that neckline (but I think it will).
So that’s our inverse head & shoulder number 1 – with target at around $15,5K which also coincides with the 23,6% Fibonacci retracement level.
The potential party isn’t over yet however – if you look at the chart, you will see a second left shoulder, the head, and if price would be bouncing around somewhat between neckline 1 and target 1, we have a right shoulder as well. In that case, we’re not speaking about 55% profit potential anymore, but $23-24K for Bitcoin or more than double the price now. We would have to wait to beyond May however for that to occur. But who knows, maybe mid-March we’re already at 15K, and you’d probably be glad already ;)
So, what do you think?! ;-)
4K, and the neckline around $11,5K – this would give us a target of $15,5K for this inverse H&S.Note that if you want to trade this inverse H&S and want to do it by the book, you wait until break-out confirmation above neckline 1. Alternative entry points are when price bounces back after that initial break-out, but those are more complex and require more patience. Volume might also be massive when such a break-out occurs, so who knows BTC doesn’t even go for a retesting of that neckline (but I think it will).
So that’s our inverse head & shoulder number 1 – with target at around $15,5K which also coincides with the 23,6% Fibonacci retracement level.
The potential party isn’t over yet however – if you look at the chart, you will see a second left shoulder, the head, and if price would be bouncing around somewhat between neckline 1 and target 1, we have a right shoulder as well. In that case, we’re not speaking about 55% profit potential anymore, but $23-24K for Bitcoin or more than double the price now. We would have to wait to beyond May however for that to occur. But who knows, maybe mid-March we’re already at 15K, and you’d probably be glad already ;)
So, what do you think?! ;-)
Note
And there we go again ---> Heikin Ashi reversal candle on the chart, followed by a nice big fat green upward candleNote
& if we zoom in on the 4-hourly, we see Bitcoin going for that resistance again. MACD in favour of the bullsNote
Guys, just want to point out three things: In my other post on "recognising trend reversals in Bitcoin", following this link:
- I explained how you can spot trend reversals in Bitcoin.
I also want to get your attention on that one again, as:
1) you could have called the bottom again after the analysis in that post (i.e. when I called a top in "2", simply by looking at the forming of the next doji (in "3").
2) You can see how the dojis told us there was a trend reversal pending in "1" and in "2"
3) we are only seeing nice green candles for the moment, so no doji yet ;-) that is good news, but stay attentive!
(note again that we are talking Heikin Ashi candle sticks, not regular candle sticks)!
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