Bitcoin seems to form a pretty clear "complex Head and Shoulders" as tought by John Murphy in his book "Technical Analysis of the Financial Markets", one of the foundations in education of technical analysis.
As Bitcoin was not able to set a new high, we may now see the start of a correction initiated by exactly that head and shoulders. The decreasing volume from peak to peak (left shoulder highest volume, head less volume, right shoulder least volume) strenghtens this idea. A significant break (1h-candle closing more than 1% under the neckline, increased volume) through the neckline would confirm the h&s and indicate that the price is aiming at <5000$ (pink arrow projecting down the distance head-neckline from neckline as tought by John J Murphy). After breaking the neck, a return to this specific line would be likely before further downward movement. If this happens, I'll open a short position with a tight stop above the neckline which should work as a resistance at this point. As we are still in a strong long term uptrend, Bitcoin breaking through this new resistance is not unlikely. This may be a pretty risky trade, so I'm only going to open a small position and, as I already mentioned, keep my stop tight.
Beyond technical analysis there seems to be a lot of disapointment because of Bitcoin Gold and the connected "free money" (even though something like that does not exist, the market always rebalances). At least I personally am reading a lot of negative comments and nearly no positive feedback. As this was one of the reasons for Bitcoin reaching approximately 6200$ I feel like Segwit2x will not be able to push the price any further and a correction is about to take place (MACD and stochastic RSI on daily basis affirm this statement, unfortunately I was not able to add them up there). After all, everything that goes up has to come down (before moving up even further :) ).
Please keep in mind that I am by no means an expert and this should not be considered investment advice. To be even more clear, I'm in the game for only a few month and this is my first public analysis. So don't be afraid to give me some constructive feedback, I'll be thankfull about that.
As Bitcoin was not able to set a new high, we may now see the start of a correction initiated by exactly that head and shoulders. The decreasing volume from peak to peak (left shoulder highest volume, head less volume, right shoulder least volume) strenghtens this idea. A significant break (1h-candle closing more than 1% under the neckline, increased volume) through the neckline would confirm the h&s and indicate that the price is aiming at <5000$ (pink arrow projecting down the distance head-neckline from neckline as tought by John J Murphy). After breaking the neck, a return to this specific line would be likely before further downward movement. If this happens, I'll open a short position with a tight stop above the neckline which should work as a resistance at this point. As we are still in a strong long term uptrend, Bitcoin breaking through this new resistance is not unlikely. This may be a pretty risky trade, so I'm only going to open a small position and, as I already mentioned, keep my stop tight.
Beyond technical analysis there seems to be a lot of disapointment because of Bitcoin Gold and the connected "free money" (even though something like that does not exist, the market always rebalances). At least I personally am reading a lot of negative comments and nearly no positive feedback. As this was one of the reasons for Bitcoin reaching approximately 6200$ I feel like Segwit2x will not be able to push the price any further and a correction is about to take place (MACD and stochastic RSI on daily basis affirm this statement, unfortunately I was not able to add them up there). After all, everything that goes up has to come down (before moving up even further :) ).
Please keep in mind that I am by no means an expert and this should not be considered investment advice. To be even more clear, I'm in the game for only a few month and this is my first public analysis. So don't be afraid to give me some constructive feedback, I'll be thankfull about that.
Comment:
After Bitcoin just breaking the right shoulder, the h&s pattern should be obsolete. Confirmation never happened, trade was never made. By no means sad about that, as I am still holding BTC in the long run.