BTC/USD, ETH/USD: Technical Outlook, Edition #43 (06/07/21)
Chart Pattern: Head and Shoulders, a wolf in sheep’s clothing for BTC?
Once more, Bitcoin demonstrates why the 'Head and Shoulders' (HnS) should be taken with a grain (bucket) of salt when it comes to trading BTC/USD.
This pattern is usually a false set-up to draw in liquidity and trap buyers/sellers on both sides - HnS can make for some very painful trades.
The H4 below depicts a sloped 'HnS' pattern - observe where the right shoulder (RS) falls below USD 34K.
We can see that price-action then bounces up from USD 33K, attempting to reclaim uptrend support currently around USD 35K.
Bitcoin, BTC/USD - 4 Hour (H4)
Bulls have their first H4 candle close back inside uptrend support and must now plant a second quickly.
Losing bullish momentum here again at USD 35K would likely be the decisive nail in the coffin, preceding a drop to USD 30K.
Both bulls and bears must be wary of only playing one side of the market.
Buyers, remain vigilant and keep an eye out for a bullish re-test. Conversely, a bearish re-test is of particular interest for those selling Bitcoin.
We've accommodated both sides of the aisle with our forecasts for bulls and bears below:
Bitcoin, BTC/USD - 4 Hour (H4)
Q's Conclusion
Both buyers and sellers must not allow greed or optimism to interfere with prudent judgement.
Structurally speaking, ETH/USD looks far more bullish than BTC/USD.
Downside risk compels Ethereum to put in another higher high soon - otherwise, the second-largest cryptocurrency is in jeopardy of being dragged down with Bitcoin.
Check out the H4 ETH/USD forecasts below:
Ethereum, ETH/USD - 4 Hour (H4)
See you again for the next update.
- q
Once more, Bitcoin demonstrates why the 'Head and Shoulders' (HnS) should be taken with a grain (bucket) of salt when it comes to trading BTC/USD.
This pattern is usually a false set-up to draw in liquidity and trap buyers/sellers on both sides - HnS can make for some very painful trades.
The H4 below depicts a sloped 'HnS' pattern - observe where the right shoulder (RS) falls below USD 34K.
We can see that price-action then bounces up from USD 33K, attempting to reclaim uptrend support currently around USD 35K.
Bitcoin, BTC/USD - 4 Hour (H4)
Bulls have their first H4 candle close back inside uptrend support and must now plant a second quickly.
Losing bullish momentum here again at USD 35K would likely be the decisive nail in the coffin, preceding a drop to USD 30K.
Both bulls and bears must be wary of only playing one side of the market.
Buyers, remain vigilant and keep an eye out for a bullish re-test. Conversely, a bearish re-test is of particular interest for those selling Bitcoin.
We've accommodated both sides of the aisle with our forecasts for bulls and bears below:
Bitcoin, BTC/USD - 4 Hour (H4)
Q's Conclusion
Both buyers and sellers must not allow greed or optimism to interfere with prudent judgement.
Structurally speaking, ETH/USD looks far more bullish than BTC/USD.
Downside risk compels Ethereum to put in another higher high soon - otherwise, the second-largest cryptocurrency is in jeopardy of being dragged down with Bitcoin.
Check out the H4 ETH/USD forecasts below:
Ethereum, ETH/USD - 4 Hour (H4)
See you again for the next update.
- q
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.