Bitcoin was going through a low volume, fairly weak, rally that featured impulse buy after impulse buy, however in the end the bulls failed to complete the rally getting denied at the major downtrend line around $12K! Leaving all of us wondering if this was the biggest bull trap to date!!
An upside down doji (gravestone doji) formed on the daily as the bulls failed to complete the reversal. The failure to complete the reversal recharged bears as they absolutely tackled beat down the bulls. It appears we may finally be going through the 5th wave of the correction cycle.
Looking at the 4H chart I see a potential H&S forming. Could be consolidation between this area until we bounce off $10.4K to another bull trap rally that will form the right shoulder around $11.2K. This completion will result in a downtrend through the neckline with a primary target at around $8.5k.
In order to complete this correction we will need to either touch the low of around $6K to form a double bottom, or break through it and reach around $4.5-$5.5K. Once we reach the bottom of this correction, BTC will be ready for lower volatility around $4.5K-$8K for a while, and will be ready to head to new heights by August/September.
Good luck to everyone!! Feel free to leave a comment with your thoughts. Please like if you found this educational at all, I'm trying to get that 50 reputation points haha.. Thank you.
Disclaimer: Not financial advice, to be used for educational purposes only.
An upside down doji (gravestone doji) formed on the daily as the bulls failed to complete the reversal. The failure to complete the reversal recharged bears as they absolutely tackled beat down the bulls. It appears we may finally be going through the 5th wave of the correction cycle.
Looking at the 4H chart I see a potential H&S forming. Could be consolidation between this area until we bounce off $10.4K to another bull trap rally that will form the right shoulder around $11.2K. This completion will result in a downtrend through the neckline with a primary target at around $8.5k.
In order to complete this correction we will need to either touch the low of around $6K to form a double bottom, or break through it and reach around $4.5-$5.5K. Once we reach the bottom of this correction, BTC will be ready for lower volatility around $4.5K-$8K for a while, and will be ready to head to new heights by August/September.
Good luck to everyone!! Feel free to leave a comment with your thoughts. Please like if you found this educational at all, I'm trying to get that 50 reputation points haha.. Thank you.
Disclaimer: Not financial advice, to be used for educational purposes only.
Now the major resistance is at the neckline of the H&S formation around $10.2K. A break through that could be another bull trap or the start of a new uptrend.
Again major resistance was not broken, all signs point to a bearish market for the time being. There is no reason to think we can rally "to the moon" since people are fearing for their lives right now after witnessing two major swings within a month. Trade at your own risk!! But, keep fiat ready if we ever reach the overall target in this downtrend around $4 to $5K.
I will provide a market update with a new chart once we get more movement from BTC.
Thank you all!