Hi, in today’s analysis I will give an update on Bitcoin .
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We previously identified an upward trend line which had more significance as it turned out to be part of a bigger picture "Head and Shoulders pattern, with the trendline providing the Neckline.
We anticipate and profited from a short entry where it hit our Target1(T1) and Target 2 (T2), It did however, fall short of hitting T3 as the bulls came in and it found support at T2.
However, this current rally, to me is short lived. We see that there is a downtrend trendline developing and we are currently at the top of both the down trendine and a bear channel .
My view is that we will still hit T3, around $1650-$1700and we have 3 more factors to support this argument:
- The 200 EMA previously found support here and I believe it will act as support again
- Measuring the last major run discovers a 61.8% retracement which I believe will occur at T3
- Measuring the length of the neckline to the Head, of the Head & Shoulders, calculates a price range. If that range is projected from the last minor high prior to break of the neckline we see an equality or 100% range to a projected target of T3.
My short entry would be now with a stop loss above the minor high referred to above. This defines our risk and entry. Our target is T3. In doing so we can calculate our Risk to Reward to be 3.5:1 a healthy return.
Hope this helps.
Kind regards, Sean Vengan
Professional Cryptotrader & Trading Educator
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