BTCUSD Head & Shoulders (NOT iH&S) - Lows Ahead
Updated
BTC Seems to be forming the right shoulder of a H&S. I realize that other analysts are providing iH&S, which is also forming, but we are still technically in a bear market given that we have broken back down under the Downtrend line from our ATH at 20k. Will the price fall? We have the 55 EMA and 200 EMA coming up to meet the price near the neckline which will act as support and possibly provide the rally we need to finally break out of the bear market. For now, if you're long for the short term, I'd set stop losses at the neckline with FIAT on the sidelines to buy a breakout above the downtrend line.
Note
I'd like to also note that we have broken under the uptrend line from our 5.9k Low, which will act as resistance on the way back up to test the down trend line. This is why I chose to set the top of the Right Shoulder at that point. If it should happen to break back into the ascending channel, its next resistance would be the downtrend line at around 11.2-11.5Trade active
Short at 10,200Note
We've bounced off the .382 fib and will correct upwards slightly before going back down to target. I expect a bit more back and forth action along the .382 until it is finally breached and a wave of selling will ensue shortly thereafter. Short still stands with a stoploss at 10,350Note
I should also mention that I have sold 25% of my position at the .382 and will add to my short position once again if we manage to break down through itNote
Might add to my short position here if it fails to break through. BTC is currently battlling with resistance from the 50 EMA, 200 EMA and the Neckline from our H&S.All this points to us going down from here but if it manages to break, I would consider it extremely bullish. In order for us to consider it a clean break, we need volume and strong upside momentum for confirmation.
Trade closed manually
75% broke even 25% was sold at a profit. More downside to come and a short position was reopened at 10.4kNew Chart here:
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.