Bitcoin (BTC) Price Update: Possible Reversal Coming?
Hi guys!
If you read my post yesterday. I mentioned a small hammer candle.
If you take a look at the previous candle there, it looks like a hammer candle which signals a reversal of a trend (although the size is quite small). So, there is a probability that bitcoin might have a pullback and retest the support* (fib channel) around $10,800.
Although bitcoin had quite a pullback, it seems like bitcoin found a support around $10,400. And so, here are my thoughts on bitcoin for today.
BTC - 4 Hour Chart
Tools used: Stochastic RSI and Drawing Tools
The stoch RSI is showing a start of an upward momentum so it looks like bitcoin might recover for a bit. Now take a look at a pattern that is forming right now on the 4 hour chart.
If this head and shoulder pattern is completed in the next couple of days we might see a short term downtrend. For a confirmation of this head and shoulder pattern bitcoin should rally to around $11,200 then have a pullback to complete the neckline around $10,400.
However, if bitcoin keep rallying above $11,200 then this head and should pattern is invalid.
BTC - Daily Chart
Tools used: Fib-Channel, Stochastic RSI and Trendlines
If the head and shoulder pattern I mention above is completed and bitcoin have a breakdown, bitcoin might find a support around $9,400 price area. Check out how many times this line has made a contact with the price action.
Now on the other side, if bitcoin breakouts from this current resistance ($10,700 - $10,800 price area since this was a prior support turning resistance now). Bitcoin might have a rally to the upside retesting $11,800 resistance.
Happy trading guys! Hope you make lots of money today!
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!
Nice analysis! I literally did the same exact prediction when it came to the head and shoulders pattern. If BTC completes this pattern, I can easily see a move to 9000 support. Followed you since I did a BTC TA update today as well!
Thank you!
I just found that head and shoulder this morning when I was looking at bitcoin chart. I guess we'll have to wait and see how this will play out in the next couple of days. I certainly will adjust my strategies.