BTC head and shoulders fractals - intriguing patterns
BTC has been in a corrective movement for a couple months. Within these movements, it appears that there have been recurring head and shoulders patterns of different scales. Within the last couple weeks, there appears to be a head and shoulders within a head and shoulders.
In terms of predicting future movements, this analysis is more than just an illustration of fractals. Because there is this recurring pattern, it suggests it characterizes the underlying group psychology at work and strengthens predictions as long as the same pattern is evidenced.
Currently, it appears there is a potential for a head and shoulders that will result with one final shoulder move, before a move to the upside. In other words, one more small correction then a larger movement up. This is the pattern projected in red.
Alternatively, it is possible this could lead to subsequent HS that takes BTC lower.
RSI has shown converging levels with an ending around 2/24, so this may align nicely with completion of the final shoulder and movement up.
This is meant to be educational, not trading advice. There is still work that needs to be done to see if these patterns play out.
In terms of predicting future movements, this analysis is more than just an illustration of fractals. Because there is this recurring pattern, it suggests it characterizes the underlying group psychology at work and strengthens predictions as long as the same pattern is evidenced.
Currently, it appears there is a potential for a head and shoulders that will result with one final shoulder move, before a move to the upside. In other words, one more small correction then a larger movement up. This is the pattern projected in red.
Alternatively, it is possible this could lead to subsequent HS that takes BTC lower.
RSI has shown converging levels with an ending around 2/24, so this may align nicely with completion of the final shoulder and movement up.
This is meant to be educational, not trading advice. There is still work that needs to be done to see if these patterns play out.
Comment:
Not surprisingly, a similar pattern is seen with ETH, which has been following BTC trend changes.
Comment:
FYI - the final BTC right shoulder on the red HS pattern is drawn too steeply - it should be formatted to touch resistance around 9000 instead of 8600.