Looking at the 4 hours time frame (H4) a potential inverted Head and Shoulders is in progress.
Neckline (currently around 47'800) coincides also with the Mid Bollinger Band resistance level and
and breakout of those level on a H4 closing level would activate this reversal formation and open the
door for a technical target of roughly 50'000...which is also the top clouds resistance area.
On the downside watch 46'750-46'500 as the next support area as a failure to hold above this zone
would put the focus on the former bottom around 45'500.
On the hourly picture, the BTCUSD is currently within the H1 clouds in attempting to move higher; interesting to note
that the top of the H1 clouds resistance, coincides also roughly with the level of the potential inverted Head and Shoulders formation in
progress previously mentioned in H4 and a breakout of 47'800 (on H1 + H4) would warn of further upside in the cards and also corroborate
the inverted H & S validation, calling for higher levels.
Have a nice trading day.
All the best and take care.
Ironman8848 & Jean-Pierre Burki
Neckline (currently around 47'800) coincides also with the Mid Bollinger Band resistance level and
and breakout of those level on a H4 closing level would activate this reversal formation and open the
door for a technical target of roughly 50'000...which is also the top clouds resistance area.
On the downside watch 46'750-46'500 as the next support area as a failure to hold above this zone
would put the focus on the former bottom around 45'500.
On the hourly picture, the BTCUSD is currently within the H1 clouds in attempting to move higher; interesting to note
that the top of the H1 clouds resistance, coincides also roughly with the level of the potential inverted Head and Shoulders formation in
progress previously mentioned in H4 and a breakout of 47'800 (on H1 + H4) would warn of further upside in the cards and also corroborate
the inverted H & S validation, calling for higher levels.
Have a nice trading day.
All the best and take care.
Ironman8848 & Jean-Pierre Burki
Comment:
H4 last closing candle above both Mid Bollinger Band and neckline of the inverted Head and Shoulders formation; nevertheless, the Lagging line did ont confirm further upside for the time being and is still within the clouds in attempting to breakout to the upside without success for the time being. Therefore, ongoing H4 price action should give more clues for the next move. Watch also H1 and shorter time frames which will help you to validate or invalidate this inverted Head and Shoulders scenario which is calling (if confirmed) for a technical target of the psychological 50'000 level, which as already mentioned, also coincides with the H4 top of the clouds resistance zone.
