Bitcoin Potential Bullish Inverse Head and Shoulders Breakout!
Bitcoin is starting to put in some bullish structure after the breakdown from the symmetrical triangle. Bitcoin put in a bullish divergence where as prices were heading down, the RSI was moving up, suggesting at least a pause in the downwards momentum and a potential rally in the short term. Following this bullish divergence , Bitcoin is now forming a potential inverse head and shoulders formation. The neckline of this Inverse H&S pattern is around 34K, which means that we would be waiting for a candle close above 34K confirmed with strong volume for a potential long trade. Remember, patterns are not tradable until the neckline actually breaks, which is why right now it is a POTENTIAL inverse H&S and not an CONFIRMED inverse H&S . I will post an update once price closes above 34K and the inverse H&S pattern is confirmed. If the inverse H&S breakout occurs, the target would be 36.5K, which would put us back within the symmetrical triangle and also above the 200MAs on the hourly chart, which would be very bullish .
Zooming into the 15Min timeframe, we see that price is actually now testing the 200MAs as resistance, and the neckline is also around this level, which makes this zone quite an important confluence of resistance levels. Price could get rejected here and head back down and invalidate the inverse H&S pattern. Large trend reversals start with small moves, and we might be seeing the beginnings of such a reversal should the above scenario come to pass. Of course, since we are still in an overall bearish trend , we need to be careful and wait for the actual break and confirmation. I will be monitoring the market structure every day and update as the market evolves. A lot depends on if we can break the neckline of 34K.
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Zooming into the 15Min timeframe, we see that price is actually now testing the 200MAs as resistance, and the neckline is also around this level, which makes this zone quite an important confluence of resistance levels. Price could get rejected here and head back down and invalidate the inverse H&S pattern. Large trend reversals start with small moves, and we might be seeing the beginnings of such a reversal should the above scenario come to pass. Of course, since we are still in an overall bearish trend , we need to be careful and wait for the actual break and confirmation. I will be monitoring the market structure every day and update as the market evolves. A lot depends on if we can break the neckline of 34K.
Why Follow
1. Daily technical analysis
2. Live trade setups and updates
3. Group of TA experts
4. Live whale alerts
5. Critical news
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Target of inverse head and shoulders reached and now price is back within the symmetrical triangle and above the 200MAs on the hourly, giving bitcoin bullish momentum. This could be the first move that leads to a larger bullish reversal.
