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Bitcoin (BTC/USD) Head and Shoulders is a Bearish Continuation Pattern

Traditionally, you learn that Head and Shoulders patterns are for spotting tops (or bottoms if its an inverted H&S). However, I believe it is more often seen as a bearish continuation pattern. 

Let's see if this will play out for Bitcoin (BTC/USD)

BTCUSD 1H Chart

  • In this 1H chart, you actually see 2 head and shoulders. 
  • Now, you can argue they are not as "pretty" as the textbooks draw them, but the underlying reasoning is the same.
  • This pattern essentially shows a bullish attempt that failed, and within a downtrend, this opens up further bearish outlook.
  • So, as price now tests the $7900 neckline, I believe it will eventually break over the weekend and send price towards the $7000 area. 
  • The price action in the past couple of sessions has been in line with our bearish outlook for Bitcoin with $6000 in sight.
  •  

Bitcoin (BTC/USD) - Monitor 7565 For Near-term Resistance

Bitcoin (BTC/USD) Finds Relief Around $7700; Watch $8800-$9000