Here is my possible bull case scenario for Bitcoin:
If all is well, it should bounce back to the resistance area between 6430.50 - 6842.50
A break above those levels would indicate a buy signal with a target price above the next resistance lvl between 7491 - 8003 which is coincidentally in line with the 200ema. The 200ema, however, has been shown to be an invalid indication for trend reversals in bitcoin (see date 20/4 - 11/5). Nonetheless, the current bear market is showing signs of slowing down with RSI showing higher highs and lower lows.
The notes on my chart indicate a bullish setup with a "possible" bull case scenario only. A hard rejection between 6430.50 - 6842.50 would invalidate this case scenario.
If all is well, it should bounce back to the resistance area between 6430.50 - 6842.50
A break above those levels would indicate a buy signal with a target price above the next resistance lvl between 7491 - 8003 which is coincidentally in line with the 200ema. The 200ema, however, has been shown to be an invalid indication for trend reversals in bitcoin (see date 20/4 - 11/5). Nonetheless, the current bear market is showing signs of slowing down with RSI showing higher highs and lower lows.
The notes on my chart indicate a bullish setup with a "possible" bull case scenario only. A hard rejection between 6430.50 - 6842.50 would invalidate this case scenario.
Comment:
I could be wrong here, but that breach on the right shoulder looks legit. I was close in predicting a completed inverted H&S pattern before a move up to break the neckline. It may even continue up from from here, but a breach is a breach.