Bitcoin - Head and Shoulders Pattern - Drop to 6k?
Updated
Hey traders, I hope you be fine! I want to share with you what I found in Bitcoin´s chart today. As you can see, there`s a huge head and shoulders (H&S) pattern in formation, which is quite worrying since it indicates a possible drop of bitcoin´s price to 6k dollars, and therefore, a big drop of crypto´s total market capitalization. This is quite concerning since all your investments can be deeply affected by this drop.
If you are not familiar with technical analysis theory, I will explain you what this pattern exactly means. According to technical analysis theory, this pattern corresponds to a Trend change pattern, and it forecast (depending on the H&S direction) an upward or downward movement equal to the height of the pattern´s head. If this pattern consolidates, and price breaks the neck of the pattern (12.500), we can expect a big drop in bitcoin´s price in next few days, which points to 6k target.
Additionaly, if we study volume devolpment throughout time, we can notice that in every peak of the pattern, volume has been decreasing, which supports the idea of a H&S pattern formation.
Finally, I want you to know the reason of this post is to warn you about what can happen with bitcoin price and how it can affect all cryptomarkets total capitalization. H&S shoulders pattern is not confirmed yet, however if price breaks the pattern´s neck you should be worried.
If you find this analysis helpful, don't forget to follow, like and comment. I use to upload new analysis every day :)
If you are not familiar with technical analysis theory, I will explain you what this pattern exactly means. According to technical analysis theory, this pattern corresponds to a Trend change pattern, and it forecast (depending on the H&S direction) an upward or downward movement equal to the height of the pattern´s head. If this pattern consolidates, and price breaks the neck of the pattern (12.500), we can expect a big drop in bitcoin´s price in next few days, which points to 6k target.
Additionaly, if we study volume devolpment throughout time, we can notice that in every peak of the pattern, volume has been decreasing, which supports the idea of a H&S pattern formation.
Finally, I want you to know the reason of this post is to warn you about what can happen with bitcoin price and how it can affect all cryptomarkets total capitalization. H&S shoulders pattern is not confirmed yet, however if price breaks the pattern´s neck you should be worried.
If you find this analysis helpful, don't forget to follow, like and comment. I use to upload new analysis every day :)
Note
Bitcoin is not showing strength signals to break its current downtrend line. Waiting for more info.Note
Bitcoin testing resistance line againNote
Bitcoin´s break resistance line! Waiting for more infoNote
Bitcoin testing MA 200 and LongTerm tendency line (in log scale) This is a key moment!Note
Bitcoin new tendency line. I will continually update this post.Note
Bitcoin testing tendency line :)Note
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Tendency line broken. BTC is not showing strengh signalsNote
Big price drop. Is H&S actually consolidating?Note
Bitcoin´s new downtrend. If channel is broken, H&S will be almost consolidate! WatchOut! Note
Price broke the pattern´s neck!!Note
Pattern´s neck is acting like a support level, We have to keep waiting for stronger signals capable of confirm this pattern.Note
Price testing downtrendNote
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Bitcoin new uptrend :)Note
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