Bitcoin Reversal
Updated
Currently, it appears to me that bitcoin is following the path of the inverse head and shoulder I have drawn and suggested weeks ago, it has broken the trendline of the last move down in an off shade of blue. So long as 6250 (the green line) stays strong the bullish sentiment will remain and we will continue the pattern. I believe that there is a strong possibility that pattern will be completed. This is also one of the possible last times that the bulls have to reverse this trend.
So, for bitcoin to reverse its trend, it must significantly break the resistance trendline of the descending triangle (the lower purple line was the support and this will now be strong resistance, and the upper purple line was the resistance and it continues to be strong resistance), this would confirm a double bottom and it would send bitcoins price further up and to possible new highs. Failure of breaking the trendline would mean that we are most likely going to continue move sideways or continue our slow decent downwards. Once completed, the inverted head and shoulders has about an 80% chance of reaching its target objective. The Large oval is the point at which I believe bitcoin will test these trendlines.
If the inverse head and shoulder is completed then it will be going upwards to test the trend lines, if not then it will continue moving downwards or sideways.
If bitcoin cannot break the first trendline of the descending triangle, then it will continue downwards, if it can break the first trendline, it must test the true resistance which is the upper limits of 7000 or the lower limits of 8000 dependent on the time frame bitcoin makes a move; however, if it cannot break the second trendline bitcoin's price will continue downwards or sideways.
Take Away:
1.) The inverted head and shoulder must hold (the left shoulder should not dip too low) then it must test the neckline of the inverted head and shoulder, if these do not hold true, expect more downwards action.
2.) If bitcoin breaks the neckline on high volume expect to test the trendlines and expect a possible bullish reversal and a continuation upwards, if not, expect more downwards action.
Previous analysis:
So, for bitcoin to reverse its trend, it must significantly break the resistance trendline of the descending triangle (the lower purple line was the support and this will now be strong resistance, and the upper purple line was the resistance and it continues to be strong resistance), this would confirm a double bottom and it would send bitcoins price further up and to possible new highs. Failure of breaking the trendline would mean that we are most likely going to continue move sideways or continue our slow decent downwards. Once completed, the inverted head and shoulders has about an 80% chance of reaching its target objective. The Large oval is the point at which I believe bitcoin will test these trendlines.
If the inverse head and shoulder is completed then it will be going upwards to test the trend lines, if not then it will continue moving downwards or sideways.
If bitcoin cannot break the first trendline of the descending triangle, then it will continue downwards, if it can break the first trendline, it must test the true resistance which is the upper limits of 7000 or the lower limits of 8000 dependent on the time frame bitcoin makes a move; however, if it cannot break the second trendline bitcoin's price will continue downwards or sideways.
Take Away:
1.) The inverted head and shoulder must hold (the left shoulder should not dip too low) then it must test the neckline of the inverted head and shoulder, if these do not hold true, expect more downwards action.
2.) If bitcoin breaks the neckline on high volume expect to test the trendlines and expect a possible bullish reversal and a continuation upwards, if not, expect more downwards action.
Previous analysis:
Note
A breakout from the possible inverted head and shoulder pattern would put bitcoin close to the resistance levels of the descending triangle (both the neckline and the price objective are in orange). So I suspect that bitcoin will hit roughly 7800 which is the price objective denoted in the picture. A successful break out of the descending wedge would mean that the uptrend will continue and the down trend is mostly to be over for now. tradingview.com/chart/6speRo1N/
Note
Note
The right shoulder is currently sustaining a path above 6500 and I would say that there is a high possibility of it retesting 6300 if the bulls maintain it about 6500 then that would be extraordinarily bullish news.
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