Bitcoin Looks Mega Bullish, As it Tests Inverse Neckline! (BTC)
Updated
Hi friends! Welcome to this update analysis on BITCOIN! Let's get right to it! Looking at the four hour chart, you can see that BTC has continued to move higher, as it appears to be completing the right shoulder of the inverse head and shoulders pattern that I have been covering. Interestingly, Litecoin has already produced a bullish breakout of it's inverse, so it appears to be leading BTC here.
As you can see, BTC is building a bull flag inside of the right shoulder, just below the neckline of the inverse. So, that's a pretty bullish looking setup. With that said, nothing is guaranteed in this game. Yes, it's an inverse head and shoulders, but that doesn't mean that we will see a breakout. Patterns fail to breakout all the time, so (for educational purposes) the best way to trade the various TA formations, is generally to wait for a confirmed breakout. In this case, that confirmation could come in the form of a sustained, high volume breakout, or a breakout followed by a reversal that holds the neckline as new support. Regardless, the bull flag inside of the right shoulder, just below the neckline, coupled with the fact that LTC has already broken out of it's inverse head and shoulders pattern, suggests that there is a high technical probability of an upside breakout of the inverse.
In terms of targets, my first target after the breakout is at 10300. From there, assuming that we do breakout, I would imagine that BTC could continue to trade higher inside of the black dashed uptrend channel, until it hits the second resistance around 11200. Depending on what happens there, and if this pattern produces a breakout at all, there is a technical possibility that we could reach the 38.2% retrace, at about 12500, in the very near future.
With that said, you have to understand that these analyses are conditional. That means that XY and Z must occur for the targets to be reached. So don't look at the 12500 target, and then come back in a few weeks to tell me that I was wrong, if 12500 isn't reached. If the conditions aren't met, then the analysis could change. It's pretty frustrating to have to constantly deal with a million people who don't understand the reasons to be flexible in your analyses. Part of that flexibility being understanding that targets are projections of where the asset COULD go, if the required conditions materialize. I have so many people tripping about my calls for BTC to fall near 3-4K and LTC to fall toward 70 and 50. Those were CONDITIONAL calls. Review the analyses. They were ALWAYS based on a breakdown below the 2/6 lows, for those downside projections to be validated, and those breakdown conditions never materialized, so they were never validated. None of my critics seem to understand that.
I am becoming increasingly bullish right now, specifically because of the powerful hold off of the 1200 EMA (in red) and the formation of the right shoulder in the inverse head and shoulders pattern. I was fortunate enough to catch a nice bull trade on LTC's last bounce off of the 1200, and I will be a buyer of a confirmed breakout above the neckline of BTC.
On the chart, you can see that we're in side of a grey shaded area. That area is important, because it's filled with sharp reversals. Therefore, we need to be on the lookout for any such reversal moves, since there is a history of that sort of price action in this area. A confirmed breakout above the neckline, will pave the way out of this reversal zone, and toward the upside targets.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
As you can see, BTC is building a bull flag inside of the right shoulder, just below the neckline of the inverse. So, that's a pretty bullish looking setup. With that said, nothing is guaranteed in this game. Yes, it's an inverse head and shoulders, but that doesn't mean that we will see a breakout. Patterns fail to breakout all the time, so (for educational purposes) the best way to trade the various TA formations, is generally to wait for a confirmed breakout. In this case, that confirmation could come in the form of a sustained, high volume breakout, or a breakout followed by a reversal that holds the neckline as new support. Regardless, the bull flag inside of the right shoulder, just below the neckline, coupled with the fact that LTC has already broken out of it's inverse head and shoulders pattern, suggests that there is a high technical probability of an upside breakout of the inverse.
In terms of targets, my first target after the breakout is at 10300. From there, assuming that we do breakout, I would imagine that BTC could continue to trade higher inside of the black dashed uptrend channel, until it hits the second resistance around 11200. Depending on what happens there, and if this pattern produces a breakout at all, there is a technical possibility that we could reach the 38.2% retrace, at about 12500, in the very near future.
With that said, you have to understand that these analyses are conditional. That means that XY and Z must occur for the targets to be reached. So don't look at the 12500 target, and then come back in a few weeks to tell me that I was wrong, if 12500 isn't reached. If the conditions aren't met, then the analysis could change. It's pretty frustrating to have to constantly deal with a million people who don't understand the reasons to be flexible in your analyses. Part of that flexibility being understanding that targets are projections of where the asset COULD go, if the required conditions materialize. I have so many people tripping about my calls for BTC to fall near 3-4K and LTC to fall toward 70 and 50. Those were CONDITIONAL calls. Review the analyses. They were ALWAYS based on a breakdown below the 2/6 lows, for those downside projections to be validated, and those breakdown conditions never materialized, so they were never validated. None of my critics seem to understand that.
I am becoming increasingly bullish right now, specifically because of the powerful hold off of the 1200 EMA (in red) and the formation of the right shoulder in the inverse head and shoulders pattern. I was fortunate enough to catch a nice bull trade on LTC's last bounce off of the 1200, and I will be a buyer of a confirmed breakout above the neckline of BTC.
On the chart, you can see that we're in side of a grey shaded area. That area is important, because it's filled with sharp reversals. Therefore, we need to be on the lookout for any such reversal moves, since there is a history of that sort of price action in this area. A confirmed breakout above the neckline, will pave the way out of this reversal zone, and toward the upside targets.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Note
We need to be on high alert right now. If BTC doesn't breakout above the neckline of the inverse, it will not be following the lead of the alts, and that could cause them to start to reverse. BTC is testing the neckline as I write this. Pay close attention.
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