Bitcoin (BTC) - H&S Confirmed (Short) $5550 / $4900
Updated
HIGHLIGHTS
Bitcoin's (BTC) price broke through 200 daily candle - moving average (MA). Currently, the price is moving in a channel with a resistance level of around $9000.
The colored zone around $5550 and $4900 is playing the role of a strong resistance level that will stop the price falling if it reaches it.
IN DETAILS…
Fundamentally, during the last six months, Bitcoin's (BTC) price had a growth of more than 250%. On second of April price was able to broke through 200 daily candle - moving average (MA) giving enough momentum for further growth. Accompanied by the Consensus event and the growth of the S&P 500, Bitcoin also performed famously. Bitcoin's (BTC) price made it's highest point on 26th of June. Of that point, the trend started to make corrections. End of September Bitcoin dropped more than 20% for a short period of time. Those kinds of numbers are speaking of a new bearish trend coming. Bitcoin's (BTC) price is highly likely to retrace at a lower price level.
Technically, the Bitcoin broke under the channel that till now used as solid support. Trend was able to broke also the 200 daily candle - moving average (MA). Those indicators are giving the idea that price will need to find a new solid support level. From the beginning of May till end of August Bitcoin has formed a head and shoulders pattern (H&S). In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a trend reversal. Currently at the beginning of September Bitcoin's price tested the H&S formation and validated it, meaning that trend is reversing from bullish-to-bearish. Price should drop around $5550 and $4900 according to the H&S chart pattern. That target matches the support of the channel. The most likely scenario is the trend to retrace, finding stronger support, forming new lows around the colored zone.
CONCLUSION
Bitcoin's (BTC) price will retrace to find a solid support level. Colored zone close to $4900 is a strong support level, where the price could consolidate.
Good luck!
"If everyone is thinking alike, then somebody isn't thinking."
Bitcoin's (BTC) price broke through 200 daily candle - moving average (MA). Currently, the price is moving in a channel with a resistance level of around $9000.
The colored zone around $5550 and $4900 is playing the role of a strong resistance level that will stop the price falling if it reaches it.
IN DETAILS…
Fundamentally, during the last six months, Bitcoin's (BTC) price had a growth of more than 250%. On second of April price was able to broke through 200 daily candle - moving average (MA) giving enough momentum for further growth. Accompanied by the Consensus event and the growth of the S&P 500, Bitcoin also performed famously. Bitcoin's (BTC) price made it's highest point on 26th of June. Of that point, the trend started to make corrections. End of September Bitcoin dropped more than 20% for a short period of time. Those kinds of numbers are speaking of a new bearish trend coming. Bitcoin's (BTC) price is highly likely to retrace at a lower price level.
Technically, the Bitcoin broke under the channel that till now used as solid support. Trend was able to broke also the 200 daily candle - moving average (MA). Those indicators are giving the idea that price will need to find a new solid support level. From the beginning of May till end of August Bitcoin has formed a head and shoulders pattern (H&S). In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a trend reversal. Currently at the beginning of September Bitcoin's price tested the H&S formation and validated it, meaning that trend is reversing from bullish-to-bearish. Price should drop around $5550 and $4900 according to the H&S chart pattern. That target matches the support of the channel. The most likely scenario is the trend to retrace, finding stronger support, forming new lows around the colored zone.
CONCLUSION
Bitcoin's (BTC) price will retrace to find a solid support level. Colored zone close to $4900 is a strong support level, where the price could consolidate.
Good luck!
"If everyone is thinking alike, then somebody isn't thinking."
Note
Maximum duration - one month Note
Trade closed: target reached
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