Likely Breakout for BITCOIN in Head and Shoulders Pattern
Good Afternoon! This is a trend analysis for Bitcoin!
BTC
. Using a four hour chart we can see the development of the left shoulder and head. The neckline created is steep and should the pattern breakout we can likely expect a sharp price drop. Looking at the MACD we can see the significant selloff since 2/20/18 represented by the heavy downward volume. You can also see the 50 EMA (In Green) has fallen, but the 200 EMA has yet to reflect this. Both EMAs are on a trajectory for a crossover, another signal of a likely downward trend. The MACD and signal line are also likely about to cross signaling a rally that will likely complete the head and shoulder pattern before spiraling downward. I'm going to go ahead and be bold and call a $6500 price target within the next ten days for the downside.
BTC
. Using a four hour chart we can see the development of the left shoulder and head. The neckline created is steep and should the pattern breakout we can likely expect a sharp price drop. Looking at the MACD we can see the significant selloff since 2/20/18 represented by the heavy downward volume. You can also see the 50 EMA (In Green) has fallen, but the 200 EMA has yet to reflect this. Both EMAs are on a trajectory for a crossover, another signal of a likely downward trend. The MACD and signal line are also likely about to cross signaling a rally that will likely complete the head and shoulder pattern before spiraling downward. I'm going to go ahead and be bold and call a $6500 price target within the next ten days for the downside.
Comment:
Right shoulder completed, get ready for that downside!
Comment:
Good Morning!! We have finally completed the Head and Shoulders pattern on this four hour chart for BTC! As you can see, we never hit a high of $11,800 as reached with the head in the H&S Pattern. Therefore, we never invalidated the original pattern formed. As seen above, we validated the pattern at about 5pm MDT last night. As such, I deem this pattern completed and we can expect a continued sell off.