A pretty round Head&Shoulders formation is forming on the BTC-USD pair.
If the price reaches the displayed level (bottom of the triangles) and lower, there is a high probability it will continue going down in the green area. This is 43% of the height of the right shoulder. The price can dip even lower, by the height of the head.
Still there is a high possibility that it bumps back as long-term trend lines show. So if it does not cross the line, nothing will happen, it will bounce and the market will continue to be bullish .
Watch the volume as well. High volume will put more strength into the signal.
If the price reaches the displayed level (bottom of the triangles) and lower, there is a high probability it will continue going down in the green area. This is 43% of the height of the right shoulder. The price can dip even lower, by the height of the head.
Still there is a high possibility that it bumps back as long-term trend lines show. So if it does not cross the line, nothing will happen, it will bounce and the market will continue to be bullish .
Watch the volume as well. High volume will put more strength into the signal.
Comment:
The second variant happened so we will not start the trade (no shorting). A significant volume of buyers jumped in (the green slope at the bottom). It appears that the price will continue rising.