Above is the ideal scenario for the inverse head & shoulders on the 4h BTCUSD charts, as per Bitfinex prices.
$3,700 is a critical level, not only because it is the .618 fib of the entire wave from $3,200 to $4,380, but it is also the support level of the left shoulder. As long as this level holds, the IHS and cup & handle patterns appear valid, for at least a retest of their necklines, at about $4,300.
There is a bearish RSI divergence which may make it difficult to break the neckline, but that may be a battle against the hidden bullish divergence.
Realistically, I am aiming for the neckline to further assess conditions, but if the neckline were to break, I believe the 1.618, 2.618, and 3.618 levels of this "right shoulder" or "handle" will serve as appropriate targets, where the 3.618 is in alignment to the measured targets of the IHS and C&H under perfect conditions.
Staggering bids at these levels could prove to be beneficial. Stop and invalidation around the $3,600 level.
As always, do your own analysis and proceed with caution. Happy trading! :)
$3,700 is a critical level, not only because it is the .618 fib of the entire wave from $3,200 to $4,380, but it is also the support level of the left shoulder. As long as this level holds, the IHS and cup & handle patterns appear valid, for at least a retest of their necklines, at about $4,300.
There is a bearish RSI divergence which may make it difficult to break the neckline, but that may be a battle against the hidden bullish divergence.
Realistically, I am aiming for the neckline to further assess conditions, but if the neckline were to break, I believe the 1.618, 2.618, and 3.618 levels of this "right shoulder" or "handle" will serve as appropriate targets, where the 3.618 is in alignment to the measured targets of the IHS and C&H under perfect conditions.
Staggering bids at these levels could prove to be beneficial. Stop and invalidation around the $3,600 level.
As always, do your own analysis and proceed with caution. Happy trading! :)
交易开始:
Stop loss moved up to the $3,800 level.
交易开始:
Trade still active. The approach of the $3,800 level showed support. I have added more to the position at this level, with a mental stop loss around $3,770 (.786 fib of the move from $3,700 to $4,100, after the publishing of this chart). I believe these bullish formations can still play out.
Unless we see a sudden surge in strength, I am expecting a retrace to $3,950 or even $3,900 (CNBC stop loss meme and -4% from here). Beyond this, the bullish scenario becomes far less probable and the next support level would be around $3,650-3,700 (-5% loss from previous support).