Caution, this analysis was made by a beginner.
So, against my expectations BTCUSD has broken out of the large descending triangle, which was forming since the high from 20th January, and is now starting a bull rally. Also, note the Inverse Head and Shoulders pattern, which has been forming recently. In my last analysis I ignored that pattern, as I considered the descending triangle to be much stronger. But seeing the recent developments and also realizing how nicely the neckline aligns with the 0.5 retracement line, I'm starting to like that inverse H&S more and more.
Right now, I will try to give you some target zones you might want to look out for. The most obvious one seems to be the 1.618 retracement around 8900. I would expect to see at least a small correction there, either forming another bull flag or even stopping the bull rally for now. Note that the daily RSI also recently went into overbought territory.
If the resistance level at 8900 is broken, the next target zone would be the high from 5th March at 9900. I would consider that the most optimistic target for the current bull rally and I don't see BTCUSD going much higher in the short term.
Disclaimer: This analysis is only for educational purposes and NOT a trading recommendation. I am only a beginner in trading, never even traded myself and what you read in this analysis could be utter rubbish.
So, against my expectations BTCUSD has broken out of the large descending triangle, which was forming since the high from 20th January, and is now starting a bull rally. Also, note the Inverse Head and Shoulders pattern, which has been forming recently. In my last analysis I ignored that pattern, as I considered the descending triangle to be much stronger. But seeing the recent developments and also realizing how nicely the neckline aligns with the 0.5 retracement line, I'm starting to like that inverse H&S more and more.
Right now, I will try to give you some target zones you might want to look out for. The most obvious one seems to be the 1.618 retracement around 8900. I would expect to see at least a small correction there, either forming another bull flag or even stopping the bull rally for now. Note that the daily RSI also recently went into overbought territory.
If the resistance level at 8900 is broken, the next target zone would be the high from 5th March at 9900. I would consider that the most optimistic target for the current bull rally and I don't see BTCUSD going much higher in the short term.
Disclaimer: This analysis is only for educational purposes and NOT a trading recommendation. I am only a beginner in trading, never even traded myself and what you read in this analysis could be utter rubbish.
Comment:
I just realized another potential target zone when applying the Fibonacci scale directly on the inverse H&S. We just hit the 2.618 retracement there.
