BTC hits ascending wedge drop target, flirting w/ h&s breakdown

18 Mar 2018

BTC has just reached the target price drop of the ascending wedge breakdown shown by the purple dashed line. WWhile it doesn't surprise me it hit this price, it does worry me, because now we are in real danger of breaking below the neckline of this current head and shoulders..we have already sent a wick below it. In order to break it we will need at least 2 closes below the neckline on the 4 hour chart. Even then its not a guarantee that its not a fake breakout but the probability and odds are then at that point greatly in favor of a successful breakout. However 2 closes on the 1 day chart under the head and shoulders neckline will indeed signal a valid head and shoulders pattern. If this happens we may possibly plummet below my grey ascending trendline and possibly dip even lower than februarys low which is a very scary thought. So these next few candles are clutch. I'm still hoping we will eventually find strong support and a huge bounce back up from either the grey ascending trendline or just under it at the same price as februarys low thereby creating a massive double bottom pattern. The latter would probably be preferable, as it would have greater potential to take the price far higher. Anyways be careful out there if you aren't already still short, and you see 2 confirmation candles below the hea and shoulder neckline it may be wise to go short at least until right above the grey ascending trendline or possibly right above it if you are fishing to trigger a limit with a wick. A more adventurous trader may try to put their limit buy back in just above the low of february. As of right now technically the inverted head and shoulders pattern is also still in play because we haven't gone below its head but I have taken it off the chart currewntly as to not muddy up things with overlapping h&s patterns.