Bitcoin Potential Ugly Head & Shoulder Pattern Development

A little dump as expected yesterday followed by a very nice bounce in the last 12 hours. The bulls show that they are not down yet, which isn't too surprising as a lot of people were probably waiting on the sidelines to buy on a pullback. With that said, we aren't out of the oods yet and I'd even go as far to say that I am slightly favoring the bears at the moment, but we'll get more clarity in the next 8-12hrs depending now what the 4hr pullback will look like.

A key pattern I am keeping an eye on right now is this ugly head and shoulders pattern that looks to be forming. Not the apparent H&S but the concept is the same. A higher high followed by a higher low. If we pullback a decent amount under the 4hr ema, I would be betting that this pattern to play out and we'll dump even lower this time possibly to the the 42-43k level. Alts will dump even harder this time and Bitcoin Dominance will regain some ground. The Alts coins been too hot recently and is due for a correction.

Let me know your guys thoughts as well.

Comment:

The head and shoulder pattern has been negated. At this point, I still think it can go either way, not an ideal spot to enter for a trader both long or short.


You got a higher high and lower low pattern but on waning momentum and low volume. You got sell offs being bought right back up but 50k also an area of heavy selling. I honestly couldn't tell you where there is going. You could see this as a bull flag or you could see it as a bearish ascending triangle. Neither is wrong in my opinion.

Another thing that's interesting to note is that alts have not bounced from their sell off as Bitcoin has. They are no longer leading as they were last week.

Comment:

I am more bearish now than yesterday. The fact that we broke 50k, a level many were watching and got rejected shortly after is a huge reflag for me.

As mentioned before Alts are weakening against Bitcoin, last week they were outperforming during sideways trading. Something has changed. Momentum has slowed. Barring significant and unexpected bullish news, I will be maintain my bearish stance.