Potential Head & Shoulders On 4 Hour Timeframe Bitcoin
As we already know, BTC are currently having a downtrend in daily timeframe as this dotted line show to us.
Based on technical analysis rules, this downtrend will be invalidated if price breaks out the upper line.
If we zoom into smaller timeframe like this one (4H), we find that a potential head and shoulders are in the making. Whole H&S is known as reversal pattern when we are in the bullish state, but it can behave as a continuation pattern during certain trend too.
This H&S pattern is also supported by basic trading volume indicator which shows that we have pretty low volume during this small pump. Small trading volume indicate that there's small interest of transaction in market.
So here's my take :
As we are currently in a daily downtrend, this H&S might be a continuation to downside. It's supported by low volume in picture above.
Before a downsliding happen, at least we are gonna testing the neckline of pattern around 47k USD area.
This Ideas will be invalidated once the price breaking up entire golden box and closing above it.
We need to remain cautious during every trade.
Thanks for reading & good luck!
If we zoom into smaller timeframe like this one (4H), we find that a potential head and shoulders are in the making. Whole H&S is known as reversal pattern when we are in the bullish state, but it can behave as a continuation pattern during certain trend too.
This H&S pattern is also supported by basic trading volume indicator which shows that we have pretty low volume during this small pump. Small trading volume indicate that there's small interest of transaction in market.
So here's my take :
As we are currently in a daily downtrend, this H&S might be a continuation to downside. It's supported by low volume in picture above.
Before a downsliding happen, at least we are gonna testing the neckline of pattern around 47k USD area.
This Ideas will be invalidated once the price breaking up entire golden box and closing above it.
We need to remain cautious during every trade.
Thanks for reading & good luck!