BITCOIN INVERSE HEAD AND SHOULDERS BREAKOUT TARGET 38K!
Updated
Hi guys, this is OG back with another cryptocurrency update. If you find value in my work, please do like, share, and comment. And also feel free to share your ideas and technical analysis in the comments below.
In yesterday's post (linked below), I was tracking Bitcoin as it broke 30K and I said to be on the lookout for a fake breakdown, which is exactly what happened. Those who shorted the false breakdown got liquidated, so congratulations to everyone who either stayed on the sidelines or longed upon a close above 30K to confirm the false breakout.
After the false breakout and recovery, price formed kind of an inverse head and shoulders pattern, albeit a bit an unconventional-looking one, with the neckline at 33.3K. Price broke through that level with a large candle and strong volume, suggesting that this is a valid inverse head and shoulders pattern. The target of this pattern is at 38K.
Im taking a smaller position than normal on this trade though for the following reasons: 1. We are still in a downtrend on the 1H, 4H, and Daily timeframes, 2. Bitcoin has had a tendency of fakeouts, both to the downside and to the upside, and 3. we have the 200MAs as overhead resistance at 35-36K. If price reaches the 35-36K zone, I will be watching closely to see how price reacts, to see if price gets rejected, in which case I will most likely close my long. On the downside, I dont want price to break and close below the neckline of 33.3K. A quick wick down is ok, but do not want to see an hourly close below 33.3K. Then the last level Im watching is the low fo the right shoulder at 31.7K. If price closes below that, then I will most likely close the long manually to contain my risk exposure. This is a bit different than my typical set and forget trade execution strategy as the markets are a bit volatile and uncertain, so Im being a bit more hands-on in terms of trade management.
Check out my daily videos for more in-depth technical analysis and trade setups for Bitcoin, Ethereum, and Altcoins.
Why follow?
1. Community of Technical Analysts sharing analysis and trades
2. Live tracking of whale wallet movements
3. Live update of the latest important news
4. Live syncing of popular crypto tweets
5. Ebook covering how to be profitable in the cryptocurrency market
As always, I’m not a financial advisor, all information presented is for educational purposes only and not meant as financial or investment advice, do your own research, and stay safe!
In yesterday's post (linked below), I was tracking Bitcoin as it broke 30K and I said to be on the lookout for a fake breakdown, which is exactly what happened. Those who shorted the false breakdown got liquidated, so congratulations to everyone who either stayed on the sidelines or longed upon a close above 30K to confirm the false breakout.
After the false breakout and recovery, price formed kind of an inverse head and shoulders pattern, albeit a bit an unconventional-looking one, with the neckline at 33.3K. Price broke through that level with a large candle and strong volume, suggesting that this is a valid inverse head and shoulders pattern. The target of this pattern is at 38K.
Im taking a smaller position than normal on this trade though for the following reasons: 1. We are still in a downtrend on the 1H, 4H, and Daily timeframes, 2. Bitcoin has had a tendency of fakeouts, both to the downside and to the upside, and 3. we have the 200MAs as overhead resistance at 35-36K. If price reaches the 35-36K zone, I will be watching closely to see how price reacts, to see if price gets rejected, in which case I will most likely close my long. On the downside, I dont want price to break and close below the neckline of 33.3K. A quick wick down is ok, but do not want to see an hourly close below 33.3K. Then the last level Im watching is the low fo the right shoulder at 31.7K. If price closes below that, then I will most likely close the long manually to contain my risk exposure. This is a bit different than my typical set and forget trade execution strategy as the markets are a bit volatile and uncertain, so Im being a bit more hands-on in terms of trade management.
Check out my daily videos for more in-depth technical analysis and trade setups for Bitcoin, Ethereum, and Altcoins.
Why follow?
1. Community of Technical Analysts sharing analysis and trades
2. Live tracking of whale wallet movements
3. Live update of the latest important news
4. Live syncing of popular crypto tweets
5. Ebook covering how to be profitable in the cryptocurrency market
As always, I’m not a financial advisor, all information presented is for educational purposes only and not meant as financial or investment advice, do your own research, and stay safe!
Note
Not liking the rejection wick from 200EMA on hourly chart.
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