Bitcoin. Is She Gonna Pop it? Or Drop it Like it's HOT!? (BTC)
Hi friends! Welcome to this update analysis on BITCOIN! Well, after a suspenseful night session, BTC tested the neckline of the inverse head and shoulders pattern (in black,) but never managed to close above. However, all isn't lost, just yet. You can see that BTC is currently testing the 50 EMA (in orange) as support. At one point, we actually traded below it, but now we are back above. This frequent violation of the 50 EMA, which has been taking place over the past few days, has really reduced it as a resistance zone. Additionally, we have continued to remain above the falling blue dotted trendline. As you can see, BTC printed two failed attempts to surpass it, but recently managed to break above it. So, we are making a bit of shaky bullish progress, but it's happening in baby steps.
Now, I'd like to draw your attention to the dotted vertical trendline, which extends up from the neckline of the inverse head and shoulders pattern. This trendline is a measurement of the depth of the head, which has been added to a possible breakout point, representing a target yielded by a rally equal to the full potential of the formation. You can see that (assuming that a breakout occurs from the area that it is currently positioned) the measurement targets an area that would surpass the top of the channel. It is actually making contact with the top of the channel, but since this is a downtrend channel, the target would actually be above it. However, for the sake of modesty, I think as a MAXIMUM, we should target the top of the channel, if a breakout occurs. A solid breakout would push BTC into a space of little resistance, and we should hae a clear path up to the 200 EMA (in purple.) Above that, we have the 61.8% retrace, and then the top of the channle. On the downside, should BTC break below the blue dotted trendline, and the 50 EMA, we will need to watch for the bottom of the right shoulder to be supportive. Remember, we still have a big bullish divergence on the MACD, and an inverse head and shoulders pattern. If a breakout occurs, a powerful rally could ensue.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
Now, I'd like to draw your attention to the dotted vertical trendline, which extends up from the neckline of the inverse head and shoulders pattern. This trendline is a measurement of the depth of the head, which has been added to a possible breakout point, representing a target yielded by a rally equal to the full potential of the formation. You can see that (assuming that a breakout occurs from the area that it is currently positioned) the measurement targets an area that would surpass the top of the channel. It is actually making contact with the top of the channel, but since this is a downtrend channel, the target would actually be above it. However, for the sake of modesty, I think as a MAXIMUM, we should target the top of the channel, if a breakout occurs. A solid breakout would push BTC into a space of little resistance, and we should hae a clear path up to the 200 EMA (in purple.) Above that, we have the 61.8% retrace, and then the top of the channle. On the downside, should BTC break below the blue dotted trendline, and the 50 EMA, we will need to watch for the bottom of the right shoulder to be supportive. Remember, we still have a big bullish divergence on the MACD, and an inverse head and shoulders pattern. If a breakout occurs, a powerful rally could ensue.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
