The Head and Shoulders pattern is traditionally a bearish signal, but I think there is a bullish case to be made if Bitcoin breaks out above the downward-sloping trendline (which it will!) it invalidates the bearish pattern and turns into a major breakout.
Here's why this scenario could be bullish:
Let me know your thoughts!
Here's why this scenario could be bullish:
- When Bitcoin breaks above the Right Shoulder or the Head, it invalidates the bearish head-and-shoulders pattern. This will lead to a short squeeze as traders expecting a breakdown (short sellers) are forced to buy back their positions, fueling upward momentum.
- The support area is very strong ($90k to $92.5k).
- FOMO and US Bitcoin policies will fuel the breakout.
- Continuation of the previous bull run and absorption of the increasing M2 money supply.
Let me know your thoughts!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.