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BTCUSD bullish bias: Short tf (4hr) analysis

I have annotated the 4hr tf of  BTCUSD to show the chart patterns including the bearish trend line in BTCUSD after it hit a high of ~$19,666 on Dec. 17, 2017. It can be observed that bitcoinusd is in the process of completing a complex inverted head and shoulder pattern (it has more than one left shoulder and also more than one right shoulder).

A small inverted head and shoulder (or head and shoulder bottom) activated or was confirmed after neckline 1 was broken on Feb 13 2018. BitcoinUSD at the time of this post is attempting to break neckline 2 in pink. It MUST break neckline 2 for this inverse complex head and shoulder to confirm.

BTCUSD.png

Other bullish chart patterns also include a flag pattern which is bullish also in this case.
If this neckline 2 is broken, the distance from neckline 2 to the Head,projected above the breakout over neckline 2 gives a price target of ~$17,234.35. This area also coincides with resistance drawn on the chart and therefore it increases the likelihood of BTCUSD targeting the $17,000 area. Target area is between $17,980.86 and $17,248.88

A breakout above neckline 2 can be used to initiate a long position. Stop loss can be placed just underneath the Flag at ~$10,457.81.
Using $11,322.11 as the point of entry into the trade, risk = $11,322.11 – ~$10,457.81 = $864.30

Reward = ~$17,210 (as an example, as I like to get out before a target) – $11,322.11 = $5,887.89

Risk/Reward ratio = $5,887.89/$864.30 = ~6.8:1

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