Short

BTCUSD Pullback to Neckline Accomplished

Updated

Price action pulled back to the dynamic neckline resistance from the major Head and Shoulders in formation. From the chart pattern perspective, this phase can considered a important turn-point, which psychological terms can rise interests for the bearish-side and growth of bearishness of market. In addiction, retroactive Fibonacci retracement potential fractal suggest a 88.6% targe in decline to fill in confluence to the potential double-down correction from this H&S. Classical short setup. In addiction, a strong reaction by buyers HODLers can be expected in a potential bounce from the Anchored VWAP of 2018 low, which is a strong area of interest / equilibrium to fill. If the price breaks-down the demand, a new phase of bearish leg-downwards / collapse can plays-out, which will lead us to a capitulate.

Note

Note

Elliot Wave-based macro overview. BTCUSD seems to be able to conclude it's first macro wave in a contracting ending diagonal. It's pattern can lead price above 100000 before a huge bear-market that will form the macro-wave 2. To anticipate this pattern is necessary to wait the ascend trendline to be formed from the next bottom of this micro phase. This scenario can be confirmed after a weekly higher low from bottom. For now, on daily chart - as we can see above -, the price tends to fill an expanded ending diagonal (megaphone formation) with a possible lower low @ 11000 level.

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