Breakout from Head and Shoulders Pattern
Updated
BTC breakout from prior resistance level that was forming a head and shoulders pattern.
This breakout and attempts to breakout the current 5 min channel is very bullish. If you wonder why BTC isn't going much higher look at the 5 min chart. BTC now in the upper area of a clear channel on the 5 min chart. Attempts to breach this have been rejected.
Expect a pull back within this channel. Look for next long position in the 14000 area for the next good entry to form the next higher low and continuation of trend to 16500. Given BTC is bullish this may occur earlier than in the previous chart.
This breakout and attempts to breakout the current 5 min channel is very bullish. If you wonder why BTC isn't going much higher look at the 5 min chart. BTC now in the upper area of a clear channel on the 5 min chart. Attempts to breach this have been rejected.
Expect a pull back within this channel. Look for next long position in the 14000 area for the next good entry to form the next higher low and continuation of trend to 16500. Given BTC is bullish this may occur earlier than in the previous chart.
Note
Progressing well. Testing the 14000-14100 area which was the last swing high before the breakout, but not overlapping that prior range, which continues to be bullish.Trade active
Initial target 16500 reached following the further breakout of the channel shown on the 5min chart. Since there has been a further test on this breakout with the now previous area of resistance now support. Confirms the failure of the developing head and shoulder pattern. The current 16500-16800 area is an area of resistance from the left shoulder and 16000 an area of support.Note
BTC is in a correction pattern, having risen off the lows of today. Although now in the 4th day of declines, the bullish signals are: 1) Todays low is higher than the last swing low on the 30th Dec. 2) Starting to be oversold on the 4hr charts 3) off support area 14,000 and 4) potential ending of a 5 wave decline. 5) Potential hammer candlestick forming if BTC closes higher today.
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