Bitcoin Is Making A Head and Shoulders!
Updated
Bitcoin is making a Head and Shoulders on the 2hr chart.
Validation of this chart pattern would be a break of the neckline with increased sell volume .
This looks to be a Wave C retracement leg. Price could retrace to any of the fibs on this chart. I have put the Weekly 100 MA in pink at the bottom as a guide.
Validation of this chart pattern would be a break of the neckline with increased sell volume .
This looks to be a Wave C retracement leg. Price could retrace to any of the fibs on this chart. I have put the Weekly 100 MA in pink at the bottom as a guide.
Note
Looks like a re-test of the neckline, a moving average just happens to be there as well. Price going above the 7.236 would be quite bullish. Note
Expecting resistance here... Note
Lets have another look at what Bitcoin has been doing and try and work out what it could do next with some possible Elliot Wave counts.The price broke down from the head and shoulders, there was a re test of the neckline where it failed and fell to the $9090 price region. Interestingly if you measure from the top of the head to the neckline its around 17.3%. The move down from the right shoulder was around 17.3%. This move looks like 5 impulse waves down to me which suggests 2 things.
Either the ABC correction has finished and price will rally upwards from here, or...
That was an A wave of a larger corrective C wave and we are currently in B leg.
Price is currently inside a broadening decending wedge which is a bearish pattern. On the 4hr chart price looks like its trying to gain support of the 50 MA in purple. Should this happen I can see price breaking out of the wedge and testing the 7.236 fib area where there are 2 moving averages which will likely act as a form of resistance. Breaking past that fib with bullish conviction would suggest a move higher and imply the ABC retrace is over. If price reaches those moving averages with bearish momentum then we could see a move down.
Literally as I am writing this the price just broke out of the wedge. Lets see what happens.
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A look at the daily and some key moving average areas. Note
Price got rejected by those moving averages...And broke down into a falling wedge which has bounced out. I think price will get rejected by these MA's for a move down here.
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Price followed the red arrow. Note
On the daily time frame price is getting close to the cloud edge.And on lower time frames price is in a descending wedge. There is a possibility that price might have another move down to test the cloud edge, then bounce out the wedge for a move up. Breaking the cloud edge would also break the wedge and would imply more downside.
Note
Well, price broke out of the wedge. There are a couple of rejection wicks to the upside but I am assuming price will go up from here and possibly meet resistance where those moving averages are...
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