– Prolog —
Bitcoin -5.50% dropped hard in the last two days. Some reasons might have been a.e. the “Binance API hack”, MtGOX trustee dumps lots of Bitcoin -5.50% , SEC Statements about regulation (kind of a bullish thing in my opinion but.. nevermind…) and so on.
Anyways, it broke through the top of the downtrend and this showed a possible reversal of the bigger trend. There were two main patterns drawn on many TA’s in the last days, an ascending triangle and an inverted head and shoulders .
The ascending triangle pattern got rekt and is not valid anymore. The iH&S is still intact (see LS, Head, RS -2.39% ), as long as the supports mentioned below hold.
— Current Supports —
Today Bitcoin -5.50% dropped on some very important support levels @ around 9k, then it bounced a little and at time of writing it’s trading at around 9350.
Here is a list of all the important supports at around 9k:
– top of downtrend (retesting as support after breakout)
– top of old channel (retesting as support after breakout)
– support of LS (Left Shoulder of iH&S)
– EMA200 (red line / exponential moving average )
(- also it was the bottom of the red ichimoku cloud – not shown here for better overview)
— Prediction —
I expect Bitcoin -5.50% to go either up or down.. (•‿•)
BUT -> these are the conditions that have to apply to trigger either the bearish or bullish market I drew in this TA:
BULL scenario trigger:
& breakthrough of iH&S neckline (@ around 11.8k)
& breakthrough of psychological resistance @ 12k
BEAR scenario trigger:
& falling below 9k (support of LS)
&/OR falling back below top of downtrend
— Glossary —
iH&S = Inverted Head and Shoulders
LS = Left Shoulder
RS -2.39% = Right Shoulder
I will update this idea if I consider it necessary. Feel free to ask questions or give inputs in the comment section 🙂