ZEC: Bullish Reversal Incoming?ZEC (Zcash) is a privacy-focused cryptocurrency that has been trading in a bullish trend for several months. The price has been respecting the ascending trendline and making higher lows, but it has been unable to make new highs.
The head and shoulders pattern:
The recent breakdown below the ascending trendline and the formation of a head and shoulders pattern suggests that a bullish reversal is in the cards.
The head and shoulders pattern:
The head and shoulders pattern is a bearish reversal pattern that is characterized by three consecutive peaks, with the middle peak being the highest. The neckline is the horizontal line that connects the two lower peaks.
The breakdown:
The price broke down below the neckline of the head and shoulders pattern on March 8, 2023. This breakdown confirms the bearish reversal and suggests that the price is likely to fall further.
Bearish targets:
The first bearish target is the $36 level, which is the height of the head and shoulders pattern. Further downside could see the price fall to $30 or even lower.
Bullish factors:
The price is oversold on the RSI indicator.
The volume is increasing, which could indicate that a reversal is near.
The ZEC community is strong and active.
Conclusion:
The ZEC chart shows a bearish pattern, but there are some bullish factors that could lead to a reversal. Investors should always do their own research before investing in any cryptocurrency.
