From H&S to a wedge pattern, what are the targets?
Bitcoin has repeatedly tried to break below the 91k level, confirming a head-and-shoulders pattern, but all attempts, including the latest where the price dropped strongly below the support level, failed.
What pattern could we work with if we are not dealing with a head and shoulders? As it stands, we are now dealing with a falling wedge. The price has bounced off the lower boundary five times, supporting this view. Falling wedges typically lead to a continuation of the previous bull trend.
How can we trade it?
A breakout above the falling trend-line, connecting the December 17th and January 7th highs (currently around 100k), would confirm the pattern. Ideally, the price would first test the 100K level and turn lower from the trend-line, forming a more substantial setup before breaking higher.
Further confirmation would come from a break above the January 7th high of 102.82k. If successful, the pattern targets a move to 113.19k.
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
What pattern could we work with if we are not dealing with a head and shoulders? As it stands, we are now dealing with a falling wedge. The price has bounced off the lower boundary five times, supporting this view. Falling wedges typically lead to a continuation of the previous bull trend.
How can we trade it?
A breakout above the falling trend-line, connecting the December 17th and January 7th highs (currently around 100k), would confirm the pattern. Ideally, the price would first test the 100K level and turn lower from the trend-line, forming a more substantial setup before breaking higher.
Further confirmation would come from a break above the January 7th high of 102.82k. If successful, the pattern targets a move to 113.19k.
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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