Bitcoin is potentially forming a head and shoulders, in which case we should find a great resistance in the larger trend line and then fall below the support of the ascending channel to print the neckline. We currently have a bearish divergence hidden in the 1H chart, so we expect a drop soon. This should match an extension of 138.2 fib from the $ 4488 of swings to about $ 3745. Then, the price should retest the riser channel as resistance with a 61.8 fiber retracement to around $ 4282 to print the shoulder straight.
We have several levels of support if the pattern is validated and breaks down, although if we have a full extension of 161.8 fib, we could even reach $ 3300, which would be a fall of 83.4% with respect to the ATH of $ 19891 in December and we would reach 200 weeks. SMA. This is also our next major support after the $ 3,500 area and we should find the biggest trend line support before bouncing. We had the worst monthly close in November since January 2015 and I think we have yet to reach the lower area of $ 3k and the 200MA weekly before this fund is established. Total respect for my stop loss in this operation!
HAPPY TRADING
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