Bitcoin shampoo: Head and Shoulders?
Like it my friend!
Here we can see a huge probability of head and shoulders pattern to play out. Lots of people are meming around it, but lets show em.
Currently we are breaking huge support 50k, above which we were for around 90 days, also we are breaking Head And Shoulders neckline, now the day is closing below it.
If we continue selloff, the first support will be around 200MA on the Daily timeframe around ~40k.
In my opinion Head and Shoulders breakdown can happen in two scenarios:
1) Blue line - price consolidates at 200 MA (or even makes a fake breakdown) and then reverses to test neckline together with 50k level where we can expect continuation of the dump.
2) Orange line - price consolidates at 200 MA and continues to go lower, selloff accelerates even faster (less likely scenario, but should be watched too).
An invalidation of this pattern will be fake breakdown and huge reversal above 50k level or consolidation above 50k and further pump.
Manage your risk!
Here we can see a huge probability of head and shoulders pattern to play out. Lots of people are meming around it, but lets show em.
Currently we are breaking huge support 50k, above which we were for around 90 days, also we are breaking Head And Shoulders neckline, now the day is closing below it.
If we continue selloff, the first support will be around 200MA on the Daily timeframe around ~40k.
In my opinion Head and Shoulders breakdown can happen in two scenarios:
1) Blue line - price consolidates at 200 MA (or even makes a fake breakdown) and then reverses to test neckline together with 50k level where we can expect continuation of the dump.
2) Orange line - price consolidates at 200 MA and continues to go lower, selloff accelerates even faster (less likely scenario, but should be watched too).
An invalidation of this pattern will be fake breakdown and huge reversal above 50k level or consolidation above 50k and further pump.
Manage your risk!
Trade closed: target reached:
Target at 30k is reached, orange line played out, we even haven't had any consolidation at 200MA daily, just smashed through it, dump triggered by 700 mil liquidations on Binance plus other exchanges. Take care!
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