After an upper trendline breakout of the falling wedge pattern with a potential target of $11700, BTCUSD is currently forming the right shoulder of head and shoulders pattern with a possible peak of $7500. Head and shoulders top pattern typically occurs with a prior uptrend to serves as a reversal pattern, but for this one the prior trend is a downtrend and serves as a continuation pattern. We need to stay above $6600 - 6800 and break above $7500 with huge volume to invalidate the H&S pattern. If we fail and break the $6300 support, CD leg of the AB=CD pattern is confirm with a PRZ at $5500 level. If $5500 level will not hold the next support is the $5000 level which serves as the PRZ of bullish three drive pattern.
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..and now we have a Bearish Divergence..will it break down to confirm the right shoulder?
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The confirmation of the bearish divergence
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and we tested the $6300 support level.. a failure on this level will bring us to $6000 level or the PRZ of AB=CD pattern which is $5500
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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.