🔥 Bitcoin Head & Shoulders: Short-Term Outlook
Updated
Yesterday I made a post about the short term outlook of Bitcoin. I argued that there was a Head & Shoulders in the making which could send Bitcoin downwards again. See this post for reference:
Since that I made that post, the price has failed to stay above the important 40k resistance area and bounced downwards. Since the price has fallen straight through the channel support (orange), we're now facing another strong correction for BTC.
For today, there's two possible scenarios which could occur. Either we bounce off the 36.5k support area (located at the first touch of the channel support) or we fall further, with 34k as the next support.
In case we manage to stay above 36.5k, I'm confident that BTC will see some bullish price action over the weekend, potentially seeing 40k again soon.
The bearish scenario would be that BTC will continue falling, targeting 34k in the coming 24 hours. 34k is an important area because it's located at the shoulders of the inverse Head & Shoulders pattern we saw on 23-05.
Since sell-offs are notoriously volatile, we might potentially go lower than 34k, making the path clear for a push towards 31k and constructing a double bottom.
I'm currently preparing for the worst-case scenario and placing some alt coin limit orders deep in the order book in case we see another -30% or so sell-off in the coming days.
Happy trading!
Since that I made that post, the price has failed to stay above the important 40k resistance area and bounced downwards. Since the price has fallen straight through the channel support (orange), we're now facing another strong correction for BTC.
For today, there's two possible scenarios which could occur. Either we bounce off the 36.5k support area (located at the first touch of the channel support) or we fall further, with 34k as the next support.
In case we manage to stay above 36.5k, I'm confident that BTC will see some bullish price action over the weekend, potentially seeing 40k again soon.
The bearish scenario would be that BTC will continue falling, targeting 34k in the coming 24 hours. 34k is an important area because it's located at the shoulders of the inverse Head & Shoulders pattern we saw on 23-05.
Since sell-offs are notoriously volatile, we might potentially go lower than 34k, making the path clear for a push towards 31k and constructing a double bottom.
I'm currently preparing for the worst-case scenario and placing some alt coin limit orders deep in the order book in case we see another -30% or so sell-off in the coming days.
Happy trading!
Note
Big candle bearish break out of through the 36.5k support. Might face a strong sell-off today. Next target 34k.Note
Huge 1H engulfing candle around the 35k resistance. Massive buying from whales.Engulfing candles are a classic trend-reversal pattern. Let's see if BTC can maintain the upward momentum.
Note
Updated the chart with an outlook for the weekend.
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