BitcoinShort
Head & Shoulder pattern on 4/6 hour chart
Updated
After my previous idea about Head & Shoulder pattern on the 1h chart (linked below), there's now the same pattern forming on the 4 (and 6) hour chart with a top at $4480 and a neckline on $3930, making for a target of $3380. The momentum indicators (RSI/MACD) continue to weaken, making me think a further correction is coming.
With all the uncertainty regarding the 2x part of the NYA and especially btc1's thus far refusing to put in place proper replay protection, and thereby risking users losing funds, that uncertainly is understandable. And markets don't like uncertainty.
I continue to be bullish for the long term though, but expect a further pullback then we have seen now. I consider that healthy.
Funnily enough, my previous prediction of $3900 was exactly reached at $3900.00 :-)
With all the uncertainty regarding the 2x part of the NYA and especially btc1's thus far refusing to put in place proper replay protection, and thereby risking users losing funds, that uncertainly is understandable. And markets don't like uncertainty.
I continue to be bullish for the long term though, but expect a further pullback then we have seen now. I consider that healthy.
Funnily enough, my previous prediction of $3900 was exactly reached at $3900.00 :-)
Trade closed manually
FWIW, I closed/reversed my position to bullish. Even though the H&S pattern completed, the downturn reversed at $3600 and now also the momentum indicators have turned around.
A drop of 4400 to 3600 is a 15% drop which could be enough in a strong bull market in which
BTC is. There's still an important resistance at $4200, but if we break that, I expect that we'll go to new ATHs.
Related publications
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.