MagicPoopCannon

Is BTC filling our proposed pattern? Let's see!

COINBASE:BTCUSD   Bitcoin / Dollar
Hi friends! I hope you are all doing well. =D Lets take a look at Bitcoin             , shall we?

In my last post on the BTC             market, we noted that price action had been rejected at the fourth test (4) of the rising pink trendline . After analyzing the BTC             chart structure, I proposed the possibility of a developing inverse head and shoulders pattern (shown in green.) As you can see, BTC             has tumbled lower, in a way that is consistent with a developing right shoulder. We can see that it is beginning to penetrate the 50 EMA (in orange) so there will probably be further downside. While I was determining a likely low point for the proposed right shoulder, I noticed that there is a rising support level through the pattern (dashed grey trendline ). I don't normally like trendlines that cut through price action, but the dashed trendline worked well as support for the left shoulder, and parts of the head, so I decided to use it. The 38.2% retrace, and 200 EMA (in purple) also correspond with that general area. Technically, BTC             could fall all the way to the 50% retrace (Critical Support Level ) and the we could still have a valid inverse head and shoulders pattern. However, the bulls absolutely DO NOT want to lose that critical support. Trading below that would likely trigger panic selling, and it would certainly negate the proposed inverse head and shoulders pattern. Ideally, the bulls would like to see the right shoulder fill, as price action begins to round back to the upside, to retest the rising pink trendline . At the moment, there is no sign of that happening. Price is steadily falling, and the MACD is showing expanding sell-side momentum. I will keep you posted, as the chart develops.

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-JD-
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