Good Afternoon! This is a trend analysis for Bitcoin! BTC
. Using a four hour chart we can see the development of the left shoulder and head. The neckline created is steep and should the pattern breakout we can likely expect a sharp price drop. Looking at the MACD
we can see the significant selloff since 2/20/18 represented by the heavy downward volume
. You can also see the 50 EMA
(In Green) has fallen, but the 200 EMA
has yet to reflect this. Both EMAs are on a trajectory for a crossover, another signal of a likely downward trend. The MACD
and signal line are also likely about to cross signaling a rally that will likely complete the head and shoulder pattern before spiraling downward. I'm going to go ahead and be bold and call a $6500 price target within the next ten days for the downside.