BTC about to let off some fireworks for the New Year?
Updated
Happy New Year all!
I've posted a few times in the past week highlighting just how bearish BTC is looking. And now, Bitcoin is in the process of producing yet another head and shoulders that may result in some fireworks for the New Year.
Things to note
Things that would confirm the H&S
Things that would invalidate the H&S
Targets
Remember, this is bitcoin and historically it has done whatever it wants, so this isn't a lock, but it is still looking very ominous!
I've posted a few times in the past week highlighting just how bearish BTC is looking. And now, Bitcoin is in the process of producing yet another head and shoulders that may result in some fireworks for the New Year.
Things to note
- There is a rising wedge into the left shoulder
- RSI is moving into oversold territory
- The volume is consistent with a H&S
- The height of the neckline to head would bring us to a previous support/resistance level
Things that would confirm the H&S
- Increasing volume as the sell off builds momentum
- Breaking the neckline at about 11.8k
- Once the neck line is broken, retesting and subsequently being rejected by 11.8k
Things that would invalidate the H&S
- Price breaking up through the 14.5k - 15k resistance
- Price moving beyond the top of the head at about 17k
Targets
- Our first target would be around the 10k mark as it has historical resistance/support
- Our final target is about the 7k mark, which more or less lines up with the other bear patterns/projections we have seen
Remember, this is bitcoin and historically it has done whatever it wants, so this isn't a lock, but it is still looking very ominous!
Note
I forgot to mention the circle at the top of the wedge; this is an area we have to pay very close attention to, as this could be the top of the right shoulder (and of course the rising wedge). It is a pivot point for BTC and will define if we head lower, or move higher.Note
As EtherSwinger posted, rightly, in the comments, this isn't a head and shoulders because it is not coming from an uptrend; something so obvious, but something I completely overlooked!I think we have to abandon this idea and move onto the next .... ;)
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