The Bitcoin market failed to test the resistance zone again, and soon after, we found the support levels to weak to sustain the previous run. Bitcoin dropped quite sharply to about $6100 where we saw the buyers showing their interest again. What to look out for going into the weekend, lets take a look at the contradicting signals.
I see quite a lot of market reports on Tradingview and in our community focusing on the possibility of a inverse H&S pattern forming. It is important to remember that this formation will only be considered when ALL the conditions are met. Until then it is just a “possible Inv H&S”. I see that many traders are stating that it is already a confirmed pattern, this is false, we will need to see the prices break above the neckline to confirm this as possible bullish reversal pattern.
Notice how the possible Inv H&S is busy trading inside what some would call, a massive bear flag. I will take both situations into consideration and will prepare myself in the following manner. Should prices drop below $6100, i would expect the $6000 level to get tested, should this fail as support I will consider going short on the markets again, target will most likely be the previous lows that got tested.
Should the prices consolidate above $6380, I will expect a retest of the previous resistance levels, which happens to be our INV H&S necline. There could be a quick long to play between $6400 – $6600/$6800, if the market graces us with the above mentioned scenario.
For those looking at the safest entry into the market, be patient and wait for the market to consolidate above $6800 – $7000 before going long.
- This reply was modified 8 months, 1 week ago by margincall. Reason: grammar