Bitcoin: A closer look
Updated
Looking at a zoomed-in view of the right shoulder of the larger inverted head and shoulders structure. As price has been rising back up to the neckline after forming the right shoulder, it has done so while developing a bearish rising wedge structure. A downside break of the rising wedge (broken green line) occurred yesterday March 4th 11:00 candle close. Following the breakout, support was found at 11,100 which brought a new and slightly larger rising wedge structure (highest solid green line) into play that price is currently still contained within. Price has rallied up today where it has found resistance at the bottom the original rising wedge (broken green line) and the 50% Fib retracement serving as the inverted head and shoulders neckline level.
What it all means and where do we stand?
If an upside break of the neckline occurs then the inverted head and shoulders becomes valid. This would add confluence for 13,000 in the short-term and 17,000 as the extended target.
On the other hand, if the neckline is rejected and the rising wedge becomes valid provided a downside break, then confluence is added for 10,000. However, if price were to achieve 10,000, there would be accumulated downside pressure due to the formation of a double-top structure potentially sending price back within the parallel down channel. If this occurs and 10,000 cannot hold support, this would be a big catalyst to dive further.
What it all means and where do we stand?
If an upside break of the neckline occurs then the inverted head and shoulders becomes valid. This would add confluence for 13,000 in the short-term and 17,000 as the extended target.
On the other hand, if the neckline is rejected and the rising wedge becomes valid provided a downside break, then confluence is added for 10,000. However, if price were to achieve 10,000, there would be accumulated downside pressure due to the formation of a double-top structure potentially sending price back within the parallel down channel. If this occurs and 10,000 cannot hold support, this would be a big catalyst to dive further.
Note
10,000 achieved
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