Potential bitcoin Head & Shoulders Forming on the 1 hour

Bitcoin broke bearish out of its prior ascending channel and appears to be setting up for a possible 1 hour Head and Shoulders pattern for some more long term consolidation. It also rejected from the previous channel lower bound upon a retest and the 26 1 hr ema. It could potentially play-out on the 4 hour time frame as well which would obviously take more time to develop. The neckline to watch would be 7859 on bitfinex with 7820.5 being further confirmation.