Now, I'd like to draw your attention to the dotted vertical , which extends up from the neckline of the pattern. This 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 , 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 (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 , and the 50 , we will need to watch for the bottom of the right shoulder to be supportive. Remember, we still have a big on the , and an 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.***
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