Bitcoin (BTC) Price Update: Head and Shoulder Pattern Almost Complete!?

Hi guys!

If you read my post yesterday about a possible head and shoulder, although it didn't reach my target for the right shoulder at $10,800. So, here are my thoughts on bitcoin for today.

BTC - 4 Hour Chart

Tools used: Fib-Channel, Trendlines and Stoch RSI

Although the wick touched and bounced off that trendline on the fib channel, I wouldn't consider that a neckline for this head and shoulder pattern. But looking at the current stoch RSI, we might see another pullback if this current support doesn't hold.

BTC - 12 Hour Chart

Tools used: Fib-Channel, Trendlines, Ichimoku Cloud and Stoch RSI

As you can see there currently bitcoin has a lot of support from different trendlines and cloud (ichimoku cloud) so as long this support holds the head and shoulder pattern is going to be invalid.

If you notice there is a kumo twist (weakest support/resistance on the cloud) around 3rd of March 2018 so if bitcoin keep consolidating around this price for another week there is a possibility of another pullback there.

Next, if you notice stoch RSI is still on the oversold territory so there is a possibility that this current sell off is not over yet.

With all that said, I think a confirmation of this head and shoulder pattern will decided the next move of bitcoin.

Disclaimer

You know the drill guys. This is just opinion and not a financial advise. Do you own research and decide your own trades. Cheers!