Throughout all of this chop, it appears that Bitcoin has formed a possible head and shoulders pattern. As I am writing this post, BTC is currently re-testing the established neckline.
IF in fact we do continue breaking down, I have a primary support located around $6000 or in the green range shown above. There is also potential trendline support around $6200
However there is a recently established higher low, so if BTC fails to break down and instead goes north to retest the downward TL, I will be hesitant to go full bull until we break past the strong resistance at $6800.
So even though I believe there is a higher chance we will fall, I am reaming fairly neutral at the moment due to the amount of chop in the market. I plan to keep this idea updated in the comments below.
I hope you all found this idea interesting and maybe even a little helpful! I wish you all the best of luck!
Please feel free to share you ideas regarding the subject below!
It's not an head and shoulder, but simply a double top :)
if the trendline doesn't stand, we could form an ascending triangle but it's unlikely imo
oh92
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@Sessay, it very well could turn into a double top that as well. However we were still a ways away from the possible neckline that would confirm the double top. The reason I made this post was that the head and shoulders was currently testing the neckline. Which would be a much earlier confirmation then the double top :D
Here is a chart that shows the percentages from the neckline that led me to believe this reversal pattern was possible.
nemovox
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"head and shoulders"
How one shoulder is higher than other? I mean, sure the shoulder will wont apears in the exacty same price, but I expected something on the same price range.
Sorry about my english.
UmairEjaz
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@nemovox, thats the problem with TA now these days peoples draw all sorts of patterns and claim this must be true due to there biased views
oh92
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@UmairEjaz, Head and Shoulders Patterns can be found on horizontal, as well as inclining and declining slopes.
You will see in the chat below that the right shoulder is significantly lower than the right in regards of percentages to and from the neckline.
"Depending on the relationship between the two reaction highs, the neckline can slope up, slope down, or be horizontal." - Source: StockCharts you can DM for the link if you would like.
if the trendline doesn't stand, we could form an ascending triangle but it's unlikely imo