Despite yesterday's mini-dump, which initially appeared to be the right shoulder of the head and shoulders breaking out, the immediate retracement means the trading range sits within the range seen in the left shoulder.
We are still inside the incomplete head and shoulders pattern, and a bearish parallel channel.
If the price breaks out to the downside of the channel and the left shoulder range, the target for the retracement would be the same as the distance from the head to the neckline of the H&S pattern (y). This puts it inside the support zone of the 78.6% fib level of the continuation of the swing in the head of the pattern, at ~95k.
If the bulls thought they're through worst of it, the pain may not have even begun yet.
Even breaking out of the parallel channel might not be enough. The only thing that would signal the failure of the head & shoulders pattern is a new ATH, and that would need to happen quickly to save BTC from further falls.
We are still inside the incomplete head and shoulders pattern, and a bearish parallel channel.
If the price breaks out to the downside of the channel and the left shoulder range, the target for the retracement would be the same as the distance from the head to the neckline of the H&S pattern (y). This puts it inside the support zone of the 78.6% fib level of the continuation of the swing in the head of the pattern, at ~95k.
If the bulls thought they're through worst of it, the pain may not have even begun yet.
Even breaking out of the parallel channel might not be enough. The only thing that would signal the failure of the head & shoulders pattern is a new ATH, and that would need to happen quickly to save BTC from further falls.
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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.
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.