Summary:
Bitcoin price action is showing some interesting mirror image. The Head & Shoulder pattern with 19k highs did not break the neckline of the first attempt instead it retraced all the way back to full swing 61% and came down to break he neckline and took couple of month to reach the 5900 lows.
The current inverted H&S pattern, the neckline has not been breached on the first attempt, which completes right shoulder formation and price has been making a retracement back. If this we apply the same fractal logic to this pattern we might see a lower retracement which could come as deep as the low of the right shoulder before price heads up.
What makes this analysis more interesting it the both the pattern share COMMON NECKLINE. Neckline for both h&s pattern is the same trend line support/resistance.
All this might come into play if the price break the support trend lineand make lower lows. MACD still has roam to go lower.
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Disclaimer:
I am not a financial advisor, nor the information posted in this article is a financial advice. The information in this article is my personal opinion and is not recommended to make any investment transactions based on it. I do not take any responsibility for the investments made based on my analysis.
Very interesting TA.
Novice market participants are being shaken out. The first pattern was based on FOMO from dumb money and the current fractal pattern emerging would be the opposite it seems. Fear of losing more than what they have already lost.
It seems many new participants are holding negative bags in BTC and are being slowly tortured by the whales who know there will be another parabolic move in the near future.
I see a sideways market for the next 3 months...
How would you interpret this in terms of human behaviour?
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Greetings Folks,
I recently posted my Bitcoin Morning Analysis I believe we may have reached bottom and could see a little more consolidation before we break out of $11,000 zone. @tradrhacks I've been following you on social media for quiet sometime now, if it's the same Roddrigo... big fan haha. March will be a bull month and crypto will take off. If i were to interpret this into human behavior I would say this is amateur money be shaken out. Too many new investors/traders getting involved into cryptocurrencies and not understanding how they really work. Recently there was a huge wave of new users who signed up for Investfeed (Essentially a Crypto Twitter) a lot of these users had no idea what cryptocurrencies were, not even Bitcoin. Media is slamming Bitcoin into the faces of the people, causing FOMO. When you wake up to a 12% drop emotions get involved and you pull out(*repeat). Those who understand Technical Analysis, the technology behind the coins, and market cycles haven't even flinched during all this madness. Thank you for taking the time to read this.
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Hey @kidmartin-95 I appreciate the support brother and Its great to connect with you on Steemit!
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Nice analysis, I agree with you on it.
Amateurs Traders(new Participants) as always fooled by whales. Amateurs are the one who trade with emotions, sentiments, FOMO, panic etc and loose money. Whale try to use these factors and trap them. The current BTC price action is perfect example for it, looking at the inverted H&S pattern amateurs get in on longside and with this price action going aganist them and pattern not heading towards the target they sell of and take losses and later feel bad to see the price going and hit the target.
I think the whales are using this retracement to flushout last of seller before a huge move towards 17k target. we see this trend again and again over the years.
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Release the Kraken! You got a 6.39% upvote from @seakraken courtesy of @tradewithtechie!
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