Topic: Bitcoin Is Building A Massive Head And Shoulder Formation! (Read 150 times)

That is why the lag kills the probability but at the same time history repeats itself in crypto markets, this is called seasonal cycles. Looking at the left side of ABCD(in this example AB wave) pattern and predicting the B dip point is ok but this pattern can be a "butterfly pattern" too. So professional traders put the buy limit order next to B and the rest will be done by market price discovery. It is always better to check the historical support-resistance lines before trading the prediction because patterns react quickly at these price levels.

The professional traders or master traders usually depend on previous chart happenings to determine the next direction of market. This is the way chart analysis go. You are saying what it is like and I follow such. Analysis should predict what next before it happens.

BTC's value had a significant impact of halving on it and yeah, halving had always been a major reason for BTC's price rise no matter when, but it gets priced it perfectly any near or after halving. About the presidential election? I guess it won't matter here much but what did impacted the price was the news that Donald Trump was found CoVID-19 positive. He's been a great influencer when it comes to BTC and the news, when started spreading like wildfire, shook the global markets so badly that everything including the international stock markets got a hit once again after the Corona pandemic. And as you know about BTC's marketcap which is peanuts compared to the whole world's big stock names, when Bitmex started doing shady things and people started withdrawing their money from there, it did put a bad impact in crypto markets throwing down many cryptocurrencies including BTC for over 5-35% and some even faced the rage with continuous downforce of over 50%.

It is super confusing for inexperienced traders but summarizing the total data lets us view the main picture. It is easy to detect the pattern after it happens, the mastered traders try their hard to predict before the last part of formation happens if you know what I mean. Breaking the neckline will cause more pressure on buyers and this pressure will be the reason for a fake breakout which will hunt all stops of sellers. Just my 2 cents.

Well, it is quite good if you have summarized the entire article so that it is easy for us to understand the thought, --not just copypasting the whole content of the article.

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You are very late, bitcoin has already built a massive foundation and the fact, --this was now on the mainstream that everyone wanted to have because of the high nature value which is considered as valuable currency like a fiat.
Perhaps there will be a slight downtrend but at the end, bitcoin price will become bullish before the 4th quarter of this year will end. Remember that the halving effect has often happened after a year when halving comes.

How about your own analysis? Will bitcoin continue its upward journey? Is the halving also one of the reasons why bitcoin prices increased? Does the US presidential election affect the price of btc.
I saw in my tweet timeline, many are analyzing that btc will contninue its down trend. As someone who have almost zero experience in trading, sometimes i get confused myself.

https://greencandlesticks.com/wp-content/uploads/2020/10/BTC-10-03-2020.png

Hi, Welcome to this #analysis where we are looking at bitcoins daily timeframe perspective, as I detected #bitcoin is building a huge formation here which will play a crucial part in the ongoing outcomes and developments, this is why it is important to look at the certain levels and possible outcomes we can expect here, bitcoin, as well as other major #cryptocurrencies, are in somewhat a sideways movement since some time and such price-action will end in decisive volatile #breakouts either to the up or downside, the big question here is if these breakouts will lead into the bearish or bullish direction, in such situations we should not overspeculate things as it is happening too often these times and therefore we should better determine when a definite trend will end which can bring clarity into the situation till then smaller timeframes can be taken for trade adjustments before looking on the larger changes.

Range Building And Development:
When looking at my chart you can watch there that bitcoin has this fundamentally important neckline as the origin of the head and shoulder formation starting back in april this year with the left shoulder and the head already formed properly and now is bitcoin building the right shoulder as we can see it bounced already at the neckline, such shoulder development can often result into several smaller shoulder as we have seen it also with the left shoulder formed, besides that bitcoin currently builds the range of the right shoulder as the upper resistance is marked with the red price adjustment in my chart and the lower support marked with the blue price adjustment, these two ranges are important references points in the structure here and with a confirmation above either the upper or lower will bitcoin show the ongoing conclusions coming up.

Outlooks:
As already mentioned such formations normally breakout to the downside however there can be expectations of this when the chart has some significant supports above and is trading above important levels which is given with bitcoin in this case as it is still trading above the 10.000 USD psychological level which is, in fact, strong support and prices normally don’t just break out below such support/resistance levels, counting these factors together it is important for further measurements that bitcoin shows up with the right confirmation which will show up in the bullish perspective when bitcoin moves above the upper resistance and closes there, with the #bearish perspective this will happen when bitcoin moves below the lower support and closes there, after either confirmation has shown up it will activate the targets and further continuations with a high possibility.

Conclusion:
Bitcoin is trading in a sideways market this means for traders to better look for smaller timeframes and changes to trade or either stay out till there comes fuel into the environment and larger trends show up this is also important for money protection, as it is often in such phases as we have seen it also in the past that traders get impatient and trading often in several directions which can prove fatal in the end as it leads to overtrading, this is why it is so important to keep the patient and a cool head till the market will show up with the necessary actions otherwise smaller changes can also add up to a series of successful trades when it is done in the right professional manner, therefore, it will be highly interesting to watch how bitcoin is developing here and if the head and shoulder manages to break upsides or we see a pullback as suggested.

source:
https://greencandlesticks.com/bitcoin-is-building-a-massive-head-and-shoulder-formation/