BTCUSD recently printed a bullish divergence on the 4hrly chart (lower low in price with a higher low on the RSI) and at the moment it would seem that and inverse heads and shoulders pattern is in play with a target about about 35000 - 36000 price. The recent bounce at the neckline above the right shoulder area after the breakout at about 29500 seems to have given more weight to this pattern playing out.
Just sharing an observation. Overall market has been bearish. However, with the recent bullish divergence and inverse heads and shoulders pattern there could be a short-term bounce.
There are 3 things that give weight to this pattern playing out:
1. Recent bullish divergence to signal a possible short-term reversal.
2. Breakout from the neckline of the inverse heads and shoulders pattern.
3. The bounce on the neckline support after the breakout from about 29500.
Only ever trade what you can afford to lose nothing is ever 100%.
Just sharing an observation. Overall market has been bearish. However, with the recent bullish divergence and inverse heads and shoulders pattern there could be a short-term bounce.
There are 3 things that give weight to this pattern playing out:
1. Recent bullish divergence to signal a possible short-term reversal.
2. Breakout from the neckline of the inverse heads and shoulders pattern.
3. The bounce on the neckline support after the breakout from about 29500.
Only ever trade what you can afford to lose nothing is ever 100%.
