Head and Shoulders ?- BTC

업데이트됨

Hello fellow Cryptonians, looking at the 4 hour BTC chart, an upward channel (in blue) has formed over the last couple days. Currently we are testing the bottom of the channel at $4000, price has held previously at the $3900 and $3600 levels. If we continue to follow this uptrend we will bounce off the bottom of the channel and retest our last high at $4280 and then go on to test the top of the channel.

On the other hand a continuation of the uptrend seems to be unlikely, due to the fact that we have created a head and shoulders pattern in the channel, which usually indicates a trend reversal. A breakout of the channel will likely cause BTC to drop down and test the $3600 level.

When looking at the volume it is clear that it is decreasing and since we are at a significant spot we should see spike in volume and a breakout in either direction.

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노트

BTC has turned bearish after the head and shoulders it has created over the last couple days. We are currently seeing a reaction rally at $3800 level; however there is weak support until $3000 level which is both a psychological and technically strong support.

액티브 트레이드

We have had a small rally from the $3800 - $4000 level and are currently retesting the $3800. However I do not think that this level will hold; do to the fact we have bearish sentiment because of the rejection at $4000 and weak support at $3800. BTC will likely breakout downward and test the yearly low around $3500.

In the case that the Bulls take over we should see a retest of $4000.

액티브 트레이드

We have found support at the yearly low and are currently retesting the previous support of $3800. However due to the lack of volume in the breakout and continuation of the downward channel, we will likely test the bottom of the channel around $3000.

In the case the Bulls, we should first see test and then a breakout out the top of the channel.

노트

I like to first start off by saying that the bottom trend line for channel I mentioned in my previous update was not very accurate. When redrawing the trend line, it is easy to see that we have formed a falling wedge pattern. In classical TA this is a bullish reversal pattern. If we have a breakout above the top of the wedge we can confirm the bullish trend.If we have a breakout below the bottom of the wedge we will continue the bearish trend and test the next support area.

Currently BTC has been rejected again at the previous support of $3800 and is testing the bottom of the wedge around $3500 which is also the area for the yearly low, making it a strong support area.However if we fail to bounce off this support with large volume and purge the bottom of the wedge and the yearly low; we can expect a drop of %14 to the next support level around $3000.

액티브 트레이드