Bitcoin Building The Second Key Head And Shoulder Formation!

30 Eyl 2020Hello Traders Investors And Community,

bitcoin is building the second key head and shoulder formation, bitcoin already built such a formation one time in the established structure which confirmed suddenly to the downside as you can watch in my chart, bitcoin is now building very exactly the same head and shoulder formation also with the same size and in the same timeframe, the big question, in this case, will be now if this second triangle breaks to the downside as the first one or bitcoin manages to stabilize above the support further and move higher to confirm it upsides, therefore I detected the important levels and more likely outcomes we should consider at the moment.

Looking at my chart you can watch this second head and shoulder and how bitcoin is trading above the established support which is also existing on the higher timeframes, also it is trading above the 100-EMA in blue which was an important EMA in the last head and shoulder confirmation, the fact that bitcoin is trading above it makes it certainly more bullish at the moment and also the volume is not really matching into it as it is mixed and not steeply declining, furthermore bitcoin is trading above this rising support, taking all these important factors into consideration a bullish confirmation is at the moment more likely than the bearish one.

What is necessary here is really to wait on the confirmation before looking for the proper direction, this will happen in the bearish case when bitcoin closes below the neckline as it was seen in the first head and shoulder, with the bullish case the confirmation will happen when bitcoin manages to close above the falling dashes grey resistance line and also form a pullback from where it can move further, it is possible to enter the market immediately nevertheless the conservative approach to wait on the confirmation will be much smarter here as the final destination has not yet shown up, traders need to decide according to individual risk preferences.

In this manner, thank you for watching, good day my friends, and support for more market insight.
"The men on the trading floor may not have been to school, but they have Ph.D.’s in man’s ignorance."

Information provided is only educational and should not be used to take action in the markets.