Bitcoin - Two Inverse Head & Shoulders Scenarios to Watch For
Updated
In my earlier ideas I theorized that we were breaking downwards out of an Ascending Channel (or wedge, depending on how you draw the lines). This hasn't been invalidated yet, but the fact that it bounced back up around $1012 has me preparing for a couple of Inverse Head & Shoulders scenarios that may form.
1) Smaller Inverse H&S (yellow):
Breakout would be somewhere above 1075ish.
Target would be around $1220.
Interestingly, the target seems to coincide pretty nicely with that red trendline, at least the way I've drawn it. May not mean anything but would be a nice convergence!
If it doesn't reach it's target and bounces off the low/mid $1100's, there's potential for a larger one:
2) Larger Inverse H&S (purple):
The bottom of the larger right shoulder would be somewhere in the mid $900's, depending on where the neckline forms.
Confirmation would be a breakout above the neckline obviously :)
Target would be somewhere in the mid $1300's.
Of course we may still be going down because of that downward breakout from the ascending channel, in which case I'd watch for a double bottom around 890ish. It's too early to tell. But if we get above $1075 I'm throwing that theory out seeing if either of these ideas play out.
I should also note that the yellow Inverse H&S playing out would be consistent with my Bullish Wolfe Wave idea, which would probably give it an ultimate target similar to the purple Inverse H&S, in the mid $1300's. My guess is that any of these scenarios playing out will bring us basically right back to the ATH, which is where I think any bullish scenario would probably lead anyway :)
1) Smaller Inverse H&S (yellow):
Breakout would be somewhere above 1075ish.
Target would be around $1220.
Interestingly, the target seems to coincide pretty nicely with that red trendline, at least the way I've drawn it. May not mean anything but would be a nice convergence!
If it doesn't reach it's target and bounces off the low/mid $1100's, there's potential for a larger one:
2) Larger Inverse H&S (purple):
The bottom of the larger right shoulder would be somewhere in the mid $900's, depending on where the neckline forms.
Confirmation would be a breakout above the neckline obviously :)
Target would be somewhere in the mid $1300's.
Of course we may still be going down because of that downward breakout from the ascending channel, in which case I'd watch for a double bottom around 890ish. It's too early to tell. But if we get above $1075 I'm throwing that theory out seeing if either of these ideas play out.
I should also note that the yellow Inverse H&S playing out would be consistent with my Bullish Wolfe Wave idea, which would probably give it an ultimate target similar to the purple Inverse H&S, in the mid $1300's. My guess is that any of these scenarios playing out will bring us basically right back to the ATH, which is where I think any bullish scenario would probably lead anyway :)
Note
Looks like it's about to complete the right shoulder on the yellow Inverse Head & Shoulders - watch for breakout.First target would be the neckline of the larger Inverse H&S around $1133.
Note
If it breaks through that, the ultimate target for the yellow Inverse H&S would be around $1220.Bouncing off 1133ish might mean we go down again and start forming the right shoulder of the larger (purple) Inverse H&S
Note
I think that's officially a breakout folks. Broke above the Ichimoku Cloud on the 6hr:Note
***SWITCHING USERNAME TO Oops_I_Charted***Hey guys - just letting you know I'm disabling this account and changing to a new account permanently as Oops_I_Charted.
I'll be continuing my ideas over there so if you're following me please follow my new account instead if you're interested :)
I've published an update to this idea on this new account:
Note
Here's my new account:tradingview.com/u/Oops_I_Charted/
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