Previous post on Bitcoin (BTCUSD) with annotations and commentary can be found here.
Bitcoin analysis in this post is provided on a 1hr timeframe with commentary for price action and trading bias. The numbers on the chart are discussed below:
(1) This is the major trendline in Bitcoin (BTCUSD) drawn from price peak at ~$18,960. The trendline as shown here is currently active and any long position would be safer on a breakout to the upside of the trendline and price closing above either $6,863 or $7,731 (more conservative).
(2) Price action from June 30, 2018 till date is captured in this analysis by a head and shoulders top (bearish) pattern, albeit not 100% of the time. As shown in the chart, the pattern did confirm by price closing below the neckline at ~$6257.90. Pattern failure will occur if price closes above the head of the pattern which is ~$6579.30 (most conservative way to enter a long position).
(3) The relative strength index (RSI) as shown here is already oversold so it is perhaps best to wait for a confirmation of bearish momentum in order to get into a potential short position. Further bearish momentum is anticipated to encounter support (not shown in the chart) between ~$5449.20 and $4839.30.
As stated above, the trading bias that this analysis favors is a short (sell) bias for Bitcoin (BTCUSD).
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