BTCUSD Possible H&S or Bull's flag formation
Updated
The price moved accurately like we predicted in the previous analysis. However, there is an opportunity to form H&S pattern as there wasn't sufficient volume to overcome the resistance of $9000. BTC is at a critical moment: right now the price can move in two scenarios with equal probabilities. It is below Ichimoku cloud and the red line is above the green line which means strong resistance, moreover Stoch RSI is about to reach overbought zone. It broke down the ascending channel. However it is currently on the way back to it. If it manages to return then three rising valley of Bull's flag will indicate the possibility of breaking through the resistance which will grant an opportunity to move higher and consolidate there. Also ABC correction wave which was observed after 5 Elliott Impulse waves has finished, this increase the possibility of the further growth.
In case of pessimistic scenario the price will grow to the $8500-$8600 zone and then will fall back to the $8000 which will complete H&S formation. Then the price will decrease till the next support zone around $7200.
In case of optimistic scenario the price will move out of Ichi cloud making it the strong support level and will go above $9000 which will complete Bull's flag pattern and will open the way to a higher level of trades.
We recommend to carefully track BTC price movements and put a stop loss in case of pessimistic scenario on all your trades. In case of optimistic scenario we will provide you with new good signals and trade opportunities. Currently all trades are very risky, the market hasn't recovered yet, be patient.
In case of pessimistic scenario the price will grow to the $8500-$8600 zone and then will fall back to the $8000 which will complete H&S formation. Then the price will decrease till the next support zone around $7200.
In case of optimistic scenario the price will move out of Ichi cloud making it the strong support level and will go above $9000 which will complete Bull's flag pattern and will open the way to a higher level of trades.
We recommend to carefully track BTC price movements and put a stop loss in case of pessimistic scenario on all your trades. In case of optimistic scenario we will provide you with new good signals and trade opportunities. Currently all trades are very risky, the market hasn't recovered yet, be patient.
Note
Seems like the price follows the pessimistic scenario and will form H&S. In this case we will have a rebound from $7200. Put stop loss on all your trades as high as possibleNote
However the price managed to survive bear pressure. H&S pattern wasn't finished. At this moment the price should consolidate in the channel and if it bounces from $8500 level a reversal and further growth will happen
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