BTC Breakout

Hello Steemians! Finally we have a breakout in place in all major crypto. Let us have a look at BTC.

BTC daily chart now shows a classic Inverted Head and Shoulders pattern. Now the question is during my last crypto post, I drew that pattern but didn't mention it, why? Well; experience: a chart pattern is never complete until all the elements are confirmed. It fails even after that. So there is really no point calling a pattern until confirmation. The most important element of an Inverted Head and Shoulders patterns is the breakout of the neckline, as shown in the chart above. That only happened this afternoon with some decent volume. Pattern is now complete. Prices are currently trading at 7364, which is well above the 50 -EMA of 6848. We held the first pullback at the right shoulder support at 6075. So this is, as of now, a new uptrend.

However, this pattern can still fail. Any pattern can fail. But taking it in face value... we can say that we have a new uptrend. So the obvious question is; where do we go from here? I say near term that 9950 red line will be what I will look for, anything less is a failed breakout.

Steem:

Steem staged a similar rally following BTC. But the prices are below 50 EMA, so can't really say that a new uptrend is in place. However, since Steem didn't make any independent move, if BTC continue to rally, Steem will follow.

Disclaimer: This is NOT professional advice, this is all just my own opinion and experience. I am NOT a Certified Financial Adviser. Consult professionals for any financial, accounting or legal related questions you have.

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