Bitcoin has formed a perfect head and shoulders pattern which tends to break down below the horizontal "neckline" drawn in the image.
This analysis is just to warn traders of the potential drop that is ahead and does not have specific entry / exit prices for a trade.
This scenario seems simple to trade but it is difficult due to the likely event of "fake-outs". This is where price suddenly spikes below the neckline and then reverses immediately to the upside - wiping out overleveraged traders. After such a move, the market tends to begin the direction it will continue to the next level of resistance.
Best of luck all!
(Not financial advice - educational purposes only)
This analysis is just to warn traders of the potential drop that is ahead and does not have specific entry / exit prices for a trade.
This scenario seems simple to trade but it is difficult due to the likely event of "fake-outs". This is where price suddenly spikes below the neckline and then reverses immediately to the upside - wiping out overleveraged traders. After such a move, the market tends to begin the direction it will continue to the next level of resistance.
Best of luck all!
(Not financial advice - educational purposes only)