Dear traders!
I have been studying this daily chart of Bitcoin today and come to the conclusion that things possibly are not looking good for Bitcoin after all but there is still a little spot of light which could change things.
If you make a line chart of Bitcoin on a weekly basis you will see this head and schoulders formation is perfect. In fact it is one from a text book!
I would even say. If you take away the price scale and you show this to traders then 90% will agree that this is a very valid fead shoulder formation. I will attach a screenshot.
The neck lines of the chart are laid on the candles without wick, so on the closing price of the day's candle. but the 2nd line below is on the full candle including the low (wick). Both have broken through this neckline.
It could still be that we are going to see a failed head shoulder formation but then we need to see a counter move in the opposite direction under high volume. As it can be seen here.
Final bright spot. It could be that the red neckline is the valid one and there we are still forming the right shoulder.
Note also the volume in Bitcoin, Heavy with increasing prices but drying up when we hit all time high. Then increasing volume in the right shoulders declining price.
All in all very exciting and hopefully this analysis of Bitcoin in the somewhat longer term will be of some use for you!
I wish you great and safe trading!