This update analysis on Bitcoin! Let's get it! Looking at the four hour chart, you can see that BTC has followed my right shoulder PERFECTLY. Not only that, it bounced off of the EXACT level, where I projected the shoulder to bottom. Here comes the gloating, I'm the only analyst, who gave you that exact level, and a lot of people criticized me for it. I'm not trying to boast. I just think it's important to highlight the value and precision of my analyses.
So, the chart looks good, but we still have work to do. You can see that just above, is the 61.8% retrace, which could provide initial resistance. We need to surpass the 618, and complete the right shoulder at the neckline. From there, we'll be looking for a subsequent breakout to the upside. There is some heavy resistance at the 50% retrace (12,738,) so it will be interesting to see how BTC reacts, should it make it's way up to that level. The inverse head and shoulders target rests at about 16,475. If we see a confirmed breakout, and a break above the heavy resistance, the target is likely to be reached. Don't let that target distract you though, from the heavy resistance. That will be a critical level to focus on, and it could impact the validity of the upside target.
For educational purposes only, you could go long at this point, if you wanted to be aggressive, with a stop loss below the pink trendline , and perhaps below the 50 & 200 EMAs, around 9950. That would put you at a max loss of about 7%, while having the top of the channel (in pink) and the 50 & 200 EMAs, as supportive protection, between the current price action and your stop order.
On the downside, if we see BTC roll back over, and break down into the channel again, that would be a negative sign. You can see that there has been a lot of chopping around on the 50 & 200 EMAs. Since another breakout has occurred, we want to start to see those moving averages act as support. If we continue to violate them, it will be a sign of sustained weakness.
Looking at the volume , we can see that it was low on the breakout. Low volume breakouts can fail, so pay very close attention to any reversals here. Overall, BTC is moving exactly as anticipated, and now we just need to monitor the continued development of the pattern.
