BTCUSDT Head and Shoulders|Volume Climax|Neck Line Retest Entry

2020年4月13日

Evening Traders,

Today’s technical analysis – BTCUSDT – breaking its heads and shoulders pattern with a technical target situated at around $6100.

Points to consider,
- Trend Bearish (Neckline breached)
- Rising Wedge broke with a retest
- Structural support holding true
- RSI below 50 (Not officially oversold)
- Stochastics below 50 (Sell pressure evident)
- Volume climax node evident

BTCUSDT has broken its neckline with conviction confirming the head and shoulders pattern, a retest is likely for a short entry.

The macro rising wedge support line broke with a bearish retest, putting in BTC’s right shoulder and continuing the overall lower high projection.

Structural support is currently holding true, a retracement back to the neckline is probable which is in confluence with the .382 Fibonacci.

The RSI is below 50 but not oversold, recovery is probable as price is testing a key support. The stochastics on the other hand is also below 50. Sell pressure is still evident and there is momentum stored to the downside.

An evident volume climax node has been printed, sign that a temporary bottom may be in, price is trying to find its equilibrium before another probable impulse move.

Overall, in my opinion, the macro trend is bearish; BTC just broke out of a bearish pattern, the head and shoulders. Retest and confirmation of the neckline is on the cards which will allow for a short entry.

What are your thoughts?

Please leave a like and comment,

And remember,

“If I hadn’t made money some of the time I might have acquired market wisdom quicker.”

Jesse Livermore