BitcoinLong
Potentially Bullish IH&S pattern on BTCUSD weekly
Updated
Potentially an interesting bullish inverse head and shoulders pattern emerging on the BTCUSD weekly chart. Within a more macro ascending channel, the most recent candles have formed a left shoulder, head, and are starting to form the right. With the price currently testing the 20 and 50 VWAP, we may get a bounce. However, if it does fail, we still can rely on support from the 72 to 89 EMA cloud (red cloud) for a price bounce given its most recent history with respecting and creating a price support shelf (see right hand VPVR). MACD has also crossed and the RSI is getting compressed with upside bias.
I'm thinking some big moves are about to come inBTC and that it will rally hard to the upside. Long.
BTCUSD weekly chart. Within a more macro ascending channel, the most recent candles have formed a left shoulder, head, and are starting to form the right. With the price currently testing the 20 and 50 VWAP, we may get a bounce. However, if it does fail, we still can rely on support from the 72 to 89 EMA cloud (red cloud) for a price bounce given its most recent history with respecting and creating a price support shelf (see right hand VPVR). MACD has also crossed and the RSI is getting compressed with upside bias.I'm thinking some big moves are about to come in
BTC and that it will rally hard to the upside. Long.Note
Closed below 20 & 50 VWAP so expect more selling and testing the 72 to 89 EMA cloud (red cloud).See my bear case scenario for the worst-case scenario.
Note
Last chance on the weekly to recover here (IMO). Needs to rebound on 72/89 EMA cloud. Fortunately, there is a large volume shelf to break through but if there was heavy selling or liquidation, we could flush that easily. Cautious here.Note
Sloppy and too tight on the right shoulder but maybe? Could bounce off that 72/89 EMA cloud... Bullish conviction would also look to the volume shelves on the right and note that it would be hard to break. Would need a lot of sell volume to go much lower.We shall see!
Note
The dream... right should slowly forming off that 72/89 EMA. The chart drawing itself is a little off on width/depth but this could still pan out...Note
Another test here. On the daily, price needs to clear above 20 & 50 VWAP. Ideally, we the price closes the week above 44.6k. Just watching and waiting at this point.
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.