Daily Bitcoin/BTC (Coffee Shop) Technical Analysis (26 Feb 2018)

This is not Financial advice: Do not trade or invest based on this analysis.

No real change in the BTC price from yesterday's analysis (here), it's all very quiet.

The possible inverted Head and Shoulders pattern hasn't been invalidated yet and could still play out, with an ultimate resolution target of approx $17,000.

However, as mentioned yesterday any price move needs to be accompanied by an uptick in volume and I expect for a valid right shoulder formation, a sudden drop in the On-Balance-Volume (OBV) Indicator (suggesting an exhaustion of sellers) would reinforce the formation.

If the neckline (N/L) of the inverted H&S pattern is broken (which would represent a higher high in price) I would then be looking for a small pullback to the broken downward trendline (thick red line) to make a higher low, to establish a resumed up trend.

Since yesterday, a possible falling wedge patter has emerged just above the area of where I'd expect to see the right shoulder form.

Overlapping patterns can be a reinforcing sign (but can sometimes can just be the mind playing tricks - i.e. confirmation bias)

This week should the see the resolution of this setup, either proving it to be invalid or initiating an upside break.

I'll keep you posted.

Until tomorrow.

Bobby