Long

Bitcoin 4H Inverse Head and Shoulders

Updated

See comment for description (getting around a TradingView bug).

Comment

This inverse head and shoulders will confirm upon break of $8400, leading to likely pullback on this down move from 10k to the $8800-$9400 area or a higher timeframe bullish reversal. Alternatively, this pattern may break below the right shoulder leading to failure and possible violent downside movement.

Lower timeframes are currently looking bullish.

I would not expect Bitcoin to reach the $8945 level and so would not advise holding a long until then, though I would strongly advise entering short there for at least a scalp.

Comment

The pattern quickly confirmed with a surge up to nearly 50% of the target before a serious failure occurred, exposing huge weakness in the market with a move down passed the right shoulder.

This break of the right shoulder was a cue to stop out of longs and flip to a short position with a target of $7600 - a target which was quickly reached.

Ultimately, this setup should have yielded an initial ~ loss followed by a ~ gain.

Trade closed: target reached

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