Possible bearish divergence and inverse H&S at the same time?!?
Dear all,
After the rally, and the 30% decline it is time to take a closer look at bitcoin again.
Bitcoin has been facing allegations in calmer waters. Currently we see a head and shoulder pattern in the making, on the 1 hour time frame. If it breaks the neckline of 680, my target will be 770. (570-670=100, 670+100=770)
I recommend you to keep watching the resistance at 680 and to keep in mind that this resistance should be broken with a hugh increase in volume, to be valide...
Another thing that I've noticed is the bearish divergence, which has formed on the 1h, but not on the 4h. Because it hasn't formed on the 4h yet, this could mean the next wave on the RSI will be higher than 75 to make the bearish divergence invalide, which is also inline with the bullish H&S.
If BTC doesn't break the resistance at 680 before the end of the month, I would say that the H&S is invalide. For now it's to early to say and everything looks still very promising with the inverse bullish H&S in mind!
Keep watching 680 :)
Good luck trading guys!
Maddie
After the rally, and the 30% decline it is time to take a closer look at bitcoin again.
Bitcoin has been facing allegations in calmer waters. Currently we see a head and shoulder pattern in the making, on the 1 hour time frame. If it breaks the neckline of 680, my target will be 770. (570-670=100, 670+100=770)
I recommend you to keep watching the resistance at 680 and to keep in mind that this resistance should be broken with a hugh increase in volume, to be valide...
Another thing that I've noticed is the bearish divergence, which has formed on the 1h, but not on the 4h. Because it hasn't formed on the 4h yet, this could mean the next wave on the RSI will be higher than 75 to make the bearish divergence invalide, which is also inline with the bullish H&S.
If BTC doesn't break the resistance at 680 before the end of the month, I would say that the H&S is invalide. For now it's to early to say and everything looks still very promising with the inverse bullish H&S in mind!
Keep watching 680 :)
Good luck trading guys!
Maddie
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