The Head and Shoulders pattern is traditionally a bearish signal, but I think there is a bullish case to be made if Bitcoin breaks out above the downward-sloping trendline (which it will!) it invalidates the bearish pattern and turns into a major breakout.
Here's why this scenario could be bullish:
Let me know your thoughts!
Here's why this scenario could be bullish:
- When Bitcoin breaks above the Right Shoulder or the Head, it invalidates the bearish head-and-shoulders pattern. This will lead to a short squeeze as traders expecting a breakdown (short sellers) are forced to buy back their positions, fueling upward momentum.
- The support area is very strong ($90k to $92.5k).
- FOMO and US Bitcoin policies will fuel the breakout.
- Continuation of the previous bull run and absorption of the increasing M2 money supply.
Let me know your thoughts!
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