Battle of the Trends!!!! (Bitcoin:USD)
Updated
Bitcoin is at a crossroads. Do we continue moving up or do we break down back into the down trend coming from the ATH?
I don't know, but I would like to propose a (very) hypothetical analyisis here that looks quite bearish for Bitcoin. Keep in mind this is a hypothetical situation that has not actually happened yet, and this theory can be invalidated at anytime.
I'm stealing some trendlines from MagicPoopCannon here. If you don't follow him already, make sure you do! Anyways, here it goes, looking at the hourly chart.
We recently broke out of the major downtrend extending from the all time high, this was bullish. We then tested the neckline of a hypothetical INVERSE head and shoulders, where price was rejected sharply. This pattern is not yet invalidated and that pattern could still play out. I want to bring your attention to a smaller pattern I am seeing, which would invalidate the Inverse head and shoulders, put us back in the huge downtrend channel and create a very bearish looking near future for BTC.
Looking at the chart, you can see a (potential) downward sloping head and shoulders pattern, provided we see a break of the neckline resistance.
Why I think it could happen: on the hourly, we have the 20, 50 and 200 EMA (golden death cross I believe) that could help push the price below the neckline. If we get a close below the neckline, more downward movement can be expected, and the head and shoulders target puts us back in the major downtrend channel.
What could keep this from happening... You can see the upward sloping trendline that has been very supportive in the past (thanks MagicPoopCannon)... the neckline of the head and shoulders is about to converge with the upward sloping trendline.... if that trendline breaksdown, i think my head and shoulders pattern will complete and bitcoin's future will not look very good. If it holds, price could move back up to test the INVERSE head and shoulders, above which would be very bullish.
So what's going to happen? I have no idea... I have a bearish feeling here but not bearish enough to bet any money on it. What are your thoughts?
I don't know, but I would like to propose a (very) hypothetical analyisis here that looks quite bearish for Bitcoin. Keep in mind this is a hypothetical situation that has not actually happened yet, and this theory can be invalidated at anytime.
I'm stealing some trendlines from MagicPoopCannon here. If you don't follow him already, make sure you do! Anyways, here it goes, looking at the hourly chart.
We recently broke out of the major downtrend extending from the all time high, this was bullish. We then tested the neckline of a hypothetical INVERSE head and shoulders, where price was rejected sharply. This pattern is not yet invalidated and that pattern could still play out. I want to bring your attention to a smaller pattern I am seeing, which would invalidate the Inverse head and shoulders, put us back in the huge downtrend channel and create a very bearish looking near future for BTC.
Looking at the chart, you can see a (potential) downward sloping head and shoulders pattern, provided we see a break of the neckline resistance.
Why I think it could happen: on the hourly, we have the 20, 50 and 200 EMA (golden death cross I believe) that could help push the price below the neckline. If we get a close below the neckline, more downward movement can be expected, and the head and shoulders target puts us back in the major downtrend channel.
What could keep this from happening... You can see the upward sloping trendline that has been very supportive in the past (thanks MagicPoopCannon)... the neckline of the head and shoulders is about to converge with the upward sloping trendline.... if that trendline breaksdown, i think my head and shoulders pattern will complete and bitcoin's future will not look very good. If it holds, price could move back up to test the INVERSE head and shoulders, above which would be very bullish.
So what's going to happen? I have no idea... I have a bearish feeling here but not bearish enough to bet any money on it. What are your thoughts?
Note
Wow!!! Price just pierced the neckline and is now testing the upward trendline!!!Note
Price is now testing the top of downtrend from the all time high. Yes, these are unnatural price movements due to Binance issue, but if the prices sustain below these levels, not good for the bulls!
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