BTCUSD: Higher Low Can Lead To Inverted Head & Shoulders.

BTCUSD update: Price has retraced to the 6300 area which is serves as a minor support. As I wrote in today's S.C. report, this market is in position to establish an inverted head and shoulders pattern which is a long term bullish sign. Since there are no specific triggers to go long, we are still waiting see if price offers a buying opportunity around the 6K area.

This is a go and stop market, one that does not treat reactionary traders nicely. Understanding the type of environment and where to anticipate movements based on probability is key.

This is why we did not buy the consolidation break out going into the resistance zone. The risk of retrace was high and the situation did not fit the criteria of our swing trade plan.The question is where is the best place to get long since the retrace is in progress?

6167 to 5999 is the minor .618 support zone relative to the recent bullish swing. This would be a very convenient and high probability location for a reversal candle to appear. The other level is the 5669 reversal zone boundary which would be the extreme price scenario. This is when the market usually looks the ugliest and the weak hands are shaken.

In summary, if this market establishes a broader higher low formation around the current price, it could lead to a test of the 7120 reversal zone. As I wrote in my detailed S.C. report, this level serves as a reasonable point of reference for short term profit targets.

The broader formation is in line with our high probability location premise that we have been writing about since May. If it follows through, price can very well be on its way back to the 7381 resistance and beyond.

At S.C. we prepare and wait for the market to offer opportunities that fit within the scope of our risk profile. These opportunities are not isolated to one strategy, and is the reason why we accumulate inventory as well as take shorter term swing trades.

Many less experienced traders have a tough time in these markets because they rely on tools or information that focus on irrelevant price activity. Projected support and resistance, psychological numbers and chart patterns can provide a lot of value in a noisy environment where oscillators are much less effective.

Either way, prepare for scenarios rather than "predict" them. At least this way you put yourself in a position to let the market come to you.
bearishmomentumBitcoin (Cryptocurrency)BTCUSDhigherlowretraceSupport and Resistance

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