It doesn't matter what kind the futures are of; rice, sugar, oil or gold, shares of APPLE INC or Deutsche Bank AG, everything obeys the laws of nature, which, though, doesn't like symmetry in its outlines. So , in Bitcoin price pattern head and shoulders has formed, which is far from classical ideals in books. The pattern is due to real people’s psychology, their unconscious, if you like. So the hope for right shoulder has been frustrated and now it’s time to identify the neck...
Look at the H4 chart:
I can’t take the responsibility of identifying the support levels and say, “Bitcoin is trading above 4000 and everything is alright”, as news lines do. To understand the market essence, we have to look deeper and notice the slightest signals. So, the trend corner has slowed down, the neck line which activates head and shoulders pattern corresponds to the dynamic beam of support. This beam is the lower border of the slowed down ascending channel, the corner of which has been widened under buyers’ pressure. And now we are going through it from above...
The difficult part of the analysis is over, and for those who are still captivated by the sweet illusion, I present the outline of descending channel along which we are moving south. The main decreasing targets are: 3800, 3300, 2800.
Two descending scenarios are as following. In case of soft landing, the buyers who are ready to repent have a chance to exit at 4150 or 4250. In case of hard landing the channel will be broken and the price will go down very fast to 3600 through 3800.
Look at H1 chart:
If we look at the situation using M5 chart we will see the borders of current trading and the nearest market changes. Whether it will be 4150 following the soft scenario or directly fall down to 3800 according to the hard one we will see in the nearest future...
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