Three patterns, two scenarios
Three patterns are forming on the chart:
The last two are smaller than the megaphone hence I conclude that they have less significance, but they indicate a temporary change in the trend to bearish. Megaphone, on the other hand, is a bullish pattern and indicates a continuation of the upward trend. However, it happens to fail when the price cannot break through its upper edge. Hence, it is possible that the price will fall right through the lower edge if it does not bounce somewhere from the $47,000 to $48,000 level.
This is not investment advice.
- megaphone (bullish),
- rising widening wedge (bearish),
- head and shoulders (bearish).
The last two are smaller than the megaphone hence I conclude that they have less significance, but they indicate a temporary change in the trend to bearish. Megaphone, on the other hand, is a bullish pattern and indicates a continuation of the upward trend. However, it happens to fail when the price cannot break through its upper edge. Hence, it is possible that the price will fall right through the lower edge if it does not bounce somewhere from the $47,000 to $48,000 level.
This is not investment advice.
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