We've got a Head & Shoulders pattern completed (it is cleaner on the H4 but I've charted on daily to show the ABC correction as well). Our first target will be 8k and second target is 5k. Stops would be above the 17k psychological resistance level.
Now that we've broken the neckline, I would expect a retest of the neckline as previous support and should now hold as resistance. This would complete the B-leg and from there a deep correction back to 5k-8k.
This research is for informational purposes and should not be construed as personal advice. Trading any financial market involves risk. Trading on leverage involves risk of losses greater than deposits.
Please Like & Comment if you agree with this setup and would like to see more Crypto setups from me.
This played out beautifully. I've found Psychology plays a massive role in BTC and in fact all crypto's, because there is a lot of new money coming in from inexperienced players in the market, a lot of FOMO. However, I do expect to see a bullish breakout here back to at least $4200.00 but won't rule out $4800-5000 to retest that 200EMA.
Zakir-Ahmed
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8k max support no lower than that...but now it can go to 9k and then moon
AEFX786
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@ghose12, For sure I'm expecting 8k to hold strong but I wouldn't rule out 5k just yet. Best of luck with your trading and Happy New Year.
@ghose12, I think even with the fall of Btc, there are many other altcoins which are up and coming with great opportunities.
Zakir-Ahmed
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@AEFX786, BTC is base currency for every one in every exchange it comes down everyone come down..only alts shine when pump dump scheme...most of them dont know use of alts...as many are still scam..arount 85% scam
AEFX786
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@ghose12, My understanding is if BTC comes down, value of alts (against btc) will rise. Take for example STR/BTC (Poloniex) currently at 0.00002430 and the more BTC falls, the higher this value will increase. Of course, there are other factors and I am a technical trader.
nykbaba5
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@AEFX786, you are awesome bro, doing great job... I like your chart presentation.. and according to my study you are absolutely right..
AEFX786
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@nykbaba5, Thank you :) I hope your trading goes well. Happy New Year.
This played out beautifully. I've found Psychology plays a massive role in BTC and in fact all crypto's, because there is a lot of new money coming in from inexperienced players in the market, a lot of FOMO. However, I do expect to see a bullish breakout here back to at least $4200.00 but won't rule out $4800-5000 to retest that 200EMA.