Bitcoin has formed a inverse head and shoulders pattern. This pattern has more than enough potential to cause bitcoin to breakout of this downward channel and stay out. This downward channel has been very strong for over a month now so something like this inverse h&s pattern is necessary to break it. I talked very briefly in my last chart about this and called this a consolidation until I saw the inverse h&s pattern today.
The last attempt to breakout did not have enough volume to stay above the channel. With this next breakout we will be mid range within the Bollinger bands instead of already meeting the top. At the moment of me writing this there seems to be a large amount of volume coming off the upward trend line that started 4 months ago in September. This is a very good sign of support. The volume is larger on this support than our previous breakout of the downward channel.
Hopefully within the next few days we see a breakout of the downward channel and a drift back to the neck line of the head and shoulders. This would be a extremely bullish sign. If this were to happen I see a very quick shoot up to the 12200 resistance level.
The last attempt to breakout did not have enough volume to stay above the channel. With this next breakout we will be mid range within the Bollinger bands instead of already meeting the top. At the moment of me writing this there seems to be a large amount of volume coming off the upward trend line that started 4 months ago in September. This is a very good sign of support. The volume is larger on this support than our previous breakout of the downward channel.
Hopefully within the next few days we see a breakout of the downward channel and a drift back to the neck line of the head and shoulders. This would be a extremely bullish sign. If this were to happen I see a very quick shoot up to the 12200 resistance level.