More Bullish Signals Emerge! In BITCOIN! (BTC) =D
Updated
Hi friends! Welcome to this update analysis on Bitcoin! Let's jump right in! Looking at the four hour chart, we can see that BTC broke down from the bear flag (in blue,) as prices fell to $7,876. However, shortly after the breakdown from the bear flag, prices reversed back to the upside, and BTC is now testing the bottom of the 50 EMA (in orange.) As I've reported in many of the other cryptocurrencies that I follow, I do see signs of a potential bottom forming in the market. Looking at the MACD, you can see that we still have an enormous bullish divergence (green trendline,) as the broad sell-side momentum has been in a state of continuous deterioration. Looking at the structure on the chart, you can clearly see how we may be forming an inverse head and shoulders pattern. If this pattern completes itself, and we see a breakout above the neckline (black trendline,) I think a test of the top of the downtrend channel would likely be in play. Given the size of the structure, and the depth of the head, that would be a fair target for a rally equal to the full capacity of the pattern. The question is, will BTC pop back above the 50 EMA right now, or do we find resistance and drop lower, to form a deeper right shoulder? Keep in mind, there is a TON of overhead resistance just above the current price action. A breakout above the neckline resistance, would surpass the majority of that resistance, and it could lead to a powerful rally, which corresponds with the bullish divergence seen on the MACD. Looking at the volume, you can see that there are a lot more green bars than red, so the reemergence of the bulls is evident. In summary, I do believe that a bottom could be forming. BTC is currently testing the 50 EMA. We will have to watch how price action behaves here, to monitor the development of this potential inverse head and shoulders pattern. For educational purposes only, a break above the neckline (black trendline) would be a short-term buy signal. Keep in mind, you should never trade a pattern, until the breakout occurs. We've identified that a potential inverse head and shoulders pattern is forming, like the other charts that I follow. Now, we will need to watch carefully, to see how it develops. If this pattern comes to fruition, a powerful rally may ensue.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
Note
Keep in mind, the bear flag (in blue) is the pattern that has formed an actual breakdown. That small drop may be all it gives us, or there may be more in the cards, if we fail at the 50 EMA. The inverse head and shoulders pattern is hypothetical, and must now surpass the neckline, to be complete.Note
Many people are asking about the rejection at the 50. We appear to be rejecting it, but now I am watching to see if a small inverse head and shoulders pattern develops here, or if we head lower. If you look at the chart, you can see a small left shoulder and head, and we may be forming a right shoulder under the 50. I'll keep you posted as the chart develops.Note
The update is here! =D
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