BitcoinUpdated Likely Breakout for BITCOIN in Head and Shoulders Pattern
Good Afternoon! This is a trend analysis for Bitcoin! BTC. Using a four hour chart we can see the development of the left shoulder and head. The neckline created is steep and should the pattern breakout we can likely expect a sharp price drop. Looking at the MACD we can see the significant selloff since 2/20/18 represented by the heavy downward volume. You can also see the 50 EMA (In Green) has fallen, but the 200 EMA has yet to reflect this. Both EMAs are on a trajectory for a crossover, another signal of a likely downward trend. The MACD and signal line are also likely about to cross signaling a rally that will likely complete the head and shoulder pattern before spiraling downward. I'm going to go ahead and be bold and call a $6500 price target within the next ten days for the downside.
BTC. Using a four hour chart we can see the development of the left shoulder and head. The neckline created is steep and should the pattern breakout we can likely expect a sharp price drop. Looking at the MACD we can see the significant selloff since 2/20/18 represented by the heavy downward volume. You can also see the 50 EMA (In Green) has fallen, but the 200 EMA has yet to reflect this. Both EMAs are on a trajectory for a crossover, another signal of a likely downward trend. The MACD and signal line are also likely about to cross signaling a rally that will likely complete the head and shoulder pattern before spiraling downward. I'm going to go ahead and be bold and call a $6500 price target within the next ten days for the downside. Note
Right shoulder completed, get ready for that downside!Note
Good Morning!! We have finally completed the Head and Shoulders pattern on this four hour chart for BTC! As you can see, we never hit a high of $11,800 as reached with the head in the H&S Pattern. Therefore, we never invalidated the original pattern formed. As seen above, we validated the pattern at about 5pm MDT last night. As such, I deem this pattern completed and we can expect a continued sell off.
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