Coinbase establishing an inverted head and shoulders formation
In June 2023, sellers failed to establish a lower bottom, and buyers took over, pushing the price towards the resistance at $114-116.3, breaking through the previous Lower High (LH) which was in March 2023. In July we got a Higher High (HH) and in October, the market formed a Higher Low (HL), indicated by a new bottom higher than the previous one.
The positive trend was confirmed at the end of November when the price broke through the resistance, establishing an inverted head and shoulders formation – a clear indication of a trend reversal. I have added Coinbase to my watchlist and I'm waiting for a possible pullback towards the support level at $114-116.3 or a touch on the trendline, potentially looking for an entry for a long position, possibly in April.
It's also worth noting that the BTC halving, which usually triggers bull runs, is expected to occur in May 2024. However, it's important to be aware that this is based on the current protocol, and changes in the network or other factors may affect the timing. I share this information because the Coinbase price has a correlation with the BTC price.
Emphasizing the importance of considering both technical and fundamental factors, it is recommended to conduct thorough assessments, analyze trends, as well as support and resistance levels. Additionally, staying attentive to any news or events that may impact price movements is crucial. Do not overlook the necessity of a clear risk management plan and a thoughtful evaluation of portfolio diversification.
What do you think about this analysis? I am open to any feedback. :)
The positive trend was confirmed at the end of November when the price broke through the resistance, establishing an inverted head and shoulders formation – a clear indication of a trend reversal. I have added Coinbase to my watchlist and I'm waiting for a possible pullback towards the support level at $114-116.3 or a touch on the trendline, potentially looking for an entry for a long position, possibly in April.
It's also worth noting that the BTC halving, which usually triggers bull runs, is expected to occur in May 2024. However, it's important to be aware that this is based on the current protocol, and changes in the network or other factors may affect the timing. I share this information because the Coinbase price has a correlation with the BTC price.
Emphasizing the importance of considering both technical and fundamental factors, it is recommended to conduct thorough assessments, analyze trends, as well as support and resistance levels. Additionally, staying attentive to any news or events that may impact price movements is crucial. Do not overlook the necessity of a clear risk management plan and a thoughtful evaluation of portfolio diversification.
What do you think about this analysis? I am open to any feedback. :)