I suppose my prior analysis was reasonably close (even though being still pretty new I ended up doubting myself, fomoing out, and messing up the trade :/ learning once again that if I just would have held off it probably would have worked out. Not to mention not having to have paid all those pesky exchange fees, etc. :/) Anyway.
So the (inverse) head and shoulders didn't complete as expected; we're going back down.
If we look at both the Price, and the Relative Strength Index or RSI, we see that he former had formed a First Lower Low, and as designated by the Red Line, I expect it to now complete a Second. This I expect we'll drop down to just above the $6300 range to create that Second Lower Low in PRICE.
The reason I'm pointing this out is because if we compare BTC's Price Action to its RSI, we'll see that the latter is itself forming Higher Lows. And we know if we have: Lower Low in PRICE, combined with Higher LOW in Indicator (RSI), it is a perfect setup for a Standard Bullish Divergence. So it is my estimation that If Bitcoin's price were to drop by about 1000 dollars to around the 6300 USD range, this would alsolikely drop the RSI about a similar distance (see chart). Creating a Third Higher Low on Rsi.
So looking at the chart we see: if Bitcoin's Price drops to around the 6300 USD level, bringing with it a commensurate decline in the RSI, this would create a "textbook" setup for Standard Bullish Divergence. At this point Bulls would be in "possession of the ball" so to speak, and in prime position to do a take off to the MOOOOOOON!!!!! (Or at least ready to check the engines ;)
tl;dr: Short till ~$6300; then Moon! (back to above 8K - at which point we'd take another serious re-appraisal :)
Happy trading!
(This is all speculation and not professional trading advice. Merely some observations and personal opinions which may or may not be of interest to others.)
#BTC #bitcoinforecast #cryptotrading
So the (inverse) head and shoulders didn't complete as expected; we're going back down.
If we look at both the Price, and the Relative Strength Index or RSI, we see that he former had formed a First Lower Low, and as designated by the Red Line, I expect it to now complete a Second. This I expect we'll drop down to just above the $6300 range to create that Second Lower Low in PRICE.
The reason I'm pointing this out is because if we compare BTC's Price Action to its RSI, we'll see that the latter is itself forming Higher Lows. And we know if we have: Lower Low in PRICE, combined with Higher LOW in Indicator (RSI), it is a perfect setup for a Standard Bullish Divergence. So it is my estimation that If Bitcoin's price were to drop by about 1000 dollars to around the 6300 USD range, this would alsolikely drop the RSI about a similar distance (see chart). Creating a Third Higher Low on Rsi.
So looking at the chart we see: if Bitcoin's Price drops to around the 6300 USD level, bringing with it a commensurate decline in the RSI, this would create a "textbook" setup for Standard Bullish Divergence. At this point Bulls would be in "possession of the ball" so to speak, and in prime position to do a take off to the MOOOOOOON!!!!! (Or at least ready to check the engines ;)
tl;dr: Short till ~$6300; then Moon! (back to above 8K - at which point we'd take another serious re-appraisal :)
Happy trading!
(This is all speculation and not professional trading advice. Merely some observations and personal opinions which may or may not be of interest to others.)
#BTC #bitcoinforecast #cryptotrading
