CountOnCrypto - Bitcoin Forecast 29/04/2021
I can see an inverse head and shoulders pattern clearly on the Bitcoin chart, it is slightly deformed but that's not a problem in my eyes.
We could potentially break down as low as the left shoulder which is why I've marked a stop loss clearly below that level and below the .236 Fibonacci level. I expect us to breakout then re-test the dotted Fibonacci line as support to show strength in the trend.
It's important to mention that Inverse Head & Shoulder patterns aren't very reliable statistically in bitcoin and crypto in general but that doesn't mean they won't play out. We will see confirmation of a breakout by a sharp rise in volume following a rise above the right shoulder and dotted Fibonacci line.
The breakout target would be the height of the head and neckline from the resistance above the right shoulder. I am more bullish because we have already had three direct re-tests of the dotted Fibonacci retracement, the fourth time is commonly when it breaks; the more that resistance/ support is tested, the weaker it becomes.
We could potentially break down as low as the left shoulder which is why I've marked a stop loss clearly below that level and below the .236 Fibonacci level. I expect us to breakout then re-test the dotted Fibonacci line as support to show strength in the trend.
It's important to mention that Inverse Head & Shoulder patterns aren't very reliable statistically in bitcoin and crypto in general but that doesn't mean they won't play out. We will see confirmation of a breakout by a sharp rise in volume following a rise above the right shoulder and dotted Fibonacci line.
The breakout target would be the height of the head and neckline from the resistance above the right shoulder. I am more bullish because we have already had three direct re-tests of the dotted Fibonacci retracement, the fourth time is commonly when it breaks; the more that resistance/ support is tested, the weaker it becomes.
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