Hello traders,
Looking at daily chart for Bitcoin, we start to see that daily consolidation has started.
This morning, Bitcoin tested psychological $4000 level, but it was rejected with fairly high volume. What I see here is potential inverse head and shoulders formation in Bitcoin, and it is highly probable that Bitcoin will test $3800 once again.
Here are few reasons:
1) RSI oversold, need to cool down RSI before next bullish breakout. I will start accumulate Bitcoin again around 38..2% retracement which is around $3760-$3800 region. This region may also coincide with the orange trendline that I drew in the chart.
2) Volume is still lacking: Despite red trendline breakout, the volume is not correlating the excitement. I think this is because institutional traders are looking for real macro-trend reversal signals before they will get in. (macro-higher high)
In case of this potential inverse head and shoulders breakout the next target is roughly around $4600 where we see 200 DMA. (also 50% retracement will overlap with $4000)
Stop: $4000
Happy trading!!
Looking at daily chart for Bitcoin, we start to see that daily consolidation has started.
This morning, Bitcoin tested psychological $4000 level, but it was rejected with fairly high volume. What I see here is potential inverse head and shoulders formation in Bitcoin, and it is highly probable that Bitcoin will test $3800 once again.
Here are few reasons:
1) RSI oversold, need to cool down RSI before next bullish breakout. I will start accumulate Bitcoin again around 38..2% retracement which is around $3760-$3800 region. This region may also coincide with the orange trendline that I drew in the chart.
2) Volume is still lacking: Despite red trendline breakout, the volume is not correlating the excitement. I think this is because institutional traders are looking for real macro-trend reversal signals before they will get in. (macro-higher high)
In case of this potential inverse head and shoulders breakout the next target is roughly around $4600 where we see 200 DMA. (also 50% retracement will overlap with $4000)
Stop: $4000
Happy trading!!
Trade closed: target reached
As expected, Bitcoin reached $3800 again!
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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.
Related publications
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.