H&S is key to direction

Morning everybody,

Price action this week was so lazy that it was not needed to make any updates until today. But even today we have news only on intraday charts. If you remember from our last update we were considering upside AB-CD pattern to 9.4K area that is major 5/8 resistance. Although BTC was able to pass 2/3 of this distance but it was not able to complete it totally, changing the shape of price action on 1H chart.

Now, we easily could recognize reverse H&S pattern that makes overall analysis simple. As Right arm's bottom is already in place, until price stands above it, BTC keeps chances to reach 9.4K area as H&S has the same target.
This is first trading setup - bulls could consider long entry against the lows and 9.4K target.

Conversely, downside breakout means H&S failure. In this case we expect downside acceleration and BTC indeed could reach our 8145 target on 4H chart within a week or so. This is setup for bears...