BITCOIN Breakout of Diamond / Inverse Head and Shoulders Pattern
Updated
Friends,
On the daily chart, we can see that Bitcoin has broken out of a 3-month Diamond pattern. As I mentioned earlier, there’s also an inverse head and shoulders formation with a target of $70,800. The Diamond pattern itself has a target of $86,022.
So, what can we expect now? A pullback to the neckline and the top boundary of the Diamond is quite possible since Bitcoin is facing its first resistance around $63,500. Both uptrend and downtrends are usually accompanied by pullbacks and profit-taking, which is perfectly normal.
The Diamond Target price calculation:
The price target for a Diamond pattern is usually calculated by measuring the height of the pattern from its highest to lowest point, then projecting that distance from the breakout point. This gives a target of $86,022 as seen in the chart.
Aside from these patterns, the cup and handle, the larger inverse head and shoulders formation, and the bullish expanding flag (stage 1) point to a first target of $100,000.
The biggest resistance for the price of Bitcoin is the all-time high and the black resistance trend line that connects Bitcoin’s previous peaks before moving on to the next targets.
There are a lot of bullish signals, like the weakening Dollar, rising stock markets, falling inflation, interest rate cuts (which are positive for businesses and consumer spending), presidential elections, The Bitcoin halving from April, the 4-year cycle and many others inclusive macro data!
Disclaimer: This is my personal analysis and should not be taken as financial advice. Always conduct your own research before making any investment decisions.
Happy trading!
See here my other analysis from Bitcoin with updates:
On the daily chart, we can see that Bitcoin has broken out of a 3-month Diamond pattern. As I mentioned earlier, there’s also an inverse head and shoulders formation with a target of $70,800. The Diamond pattern itself has a target of $86,022.
So, what can we expect now? A pullback to the neckline and the top boundary of the Diamond is quite possible since Bitcoin is facing its first resistance around $63,500. Both uptrend and downtrends are usually accompanied by pullbacks and profit-taking, which is perfectly normal.
The Diamond Target price calculation:
The price target for a Diamond pattern is usually calculated by measuring the height of the pattern from its highest to lowest point, then projecting that distance from the breakout point. This gives a target of $86,022 as seen in the chart.
Aside from these patterns, the cup and handle, the larger inverse head and shoulders formation, and the bullish expanding flag (stage 1) point to a first target of $100,000.
The biggest resistance for the price of Bitcoin is the all-time high and the black resistance trend line that connects Bitcoin’s previous peaks before moving on to the next targets.
There are a lot of bullish signals, like the weakening Dollar, rising stock markets, falling inflation, interest rate cuts (which are positive for businesses and consumer spending), presidential elections, The Bitcoin halving from April, the 4-year cycle and many others inclusive macro data!
Disclaimer: This is my personal analysis and should not be taken as financial advice. Always conduct your own research before making any investment decisions.
Happy trading!
See here my other analysis from Bitcoin with updates:
Note
Hey everyone, due to the low interest and my own lack of time, I’ve decided to stop posting for now and focus entirely on my own capital.
I’ve enjoyed sharing ideas, but until things change, it doesn’t make sense to keep it up. Maybe I’ll be back down the road. Take care!
Trade closed: target reached
This is the result of this trade:
Disclaimer
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