BTCUSD Potentially Forming Textbook Head & Shoulders Pattern
This is my first post, I have been teaching myself technical analysis for 6 months now. This is not financial advice, just my observation of a pattern.
Bulls recovered nicely after the sell-off earlier in the week, however there is still much uncertainty in the market from the magnitude and duration of the event.
Keep in mind that a head and shoulders pattern is a possibility, with the characteristic pattern forming on the 4hr and a declining volume associated with the pattern. If we break the neckline of 11058, I would expect a move back down to test the lows set earlier in the week at $9,017. Personally, this seems more likely as we are losing volume, about to start a slight bear MACD cross on the 1 hr time frame, and are setup for the Stochastic RSI to undergo a bearish cross as well. This could provide an excellent double-bottom setup on the 4 hr time frame from which bulls can bounce with more strength.
If we instead null the head and shoulders pattern, I would expect a relatively strong move back up towards the $14,0000 range with higher highs and lows being set on the way.
Bulls recovered nicely after the sell-off earlier in the week, however there is still much uncertainty in the market from the magnitude and duration of the event.
Keep in mind that a head and shoulders pattern is a possibility, with the characteristic pattern forming on the 4hr and a declining volume associated with the pattern. If we break the neckline of 11058, I would expect a move back down to test the lows set earlier in the week at $9,017. Personally, this seems more likely as we are losing volume, about to start a slight bear MACD cross on the 1 hr time frame, and are setup for the Stochastic RSI to undergo a bearish cross as well. This could provide an excellent double-bottom setup on the 4 hr time frame from which bulls can bounce with more strength.
If we instead null the head and shoulders pattern, I would expect a relatively strong move back up towards the $14,0000 range with higher highs and lows being set on the way.
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1:40 pm looking to test the neckline soon