Welcome friends, foes, distinguished guests, and back ally riffraff, into presence of the undisputed king, the unparalleled master, the ghastly shadow of the of the charts, MAGIC! Feast your eyes on the wizardry, as his majesty reviews the one, the ONLY, BITCOIN!!!! Let's get it! Looking at the four hour chart, you can see that BTC is inches from the neckline resistance of the inverse head and shoulders patter. When will they ever learn? LOL Forget the haters. To my family who follows me, stick with me people. I'll be your blazing torch, in the dark market forest! If the haters want to be on the other side of our trades, we'll be there to take their money, like candy from a baby. You can see that the 50 EMA has formed a golden cross above the 200 EMA. This is a mildly significant signal that is indicative of a longer term trend reversal, which corresponds nicely with the gigantic inverse head and shoulders pattern that I've been covering, as well as the market bottom that occurred on 2/6.
So, now it's a waiting game. Now, we wait to for the breakout. It is possible that the initial touch of the neckline could be a rejection, but the likelihood of a breakout is extremely high. If you want to enter the market on the breakout, for educational purposes only, you could place a buy order above the neckline, with a stop order below the neckline. Personally, I would put the stop order below the 618, but that's just me. You can use your own risk judgement for stop placement.
I have seen a lot of people talking about volume being low, but it's normal for volume to drop in the right shoulder of a H&S pattern. Don't be concerned with that. What we want to see, is a volume spike on the breakout above the neckline. That's where we want to see the volume.
After the breakout, you can see that there are some resistance levels in the path to a higher high. First, we have the peak of 2/20, which will give resistance at 11788. Second, we have the peak of 1/28, which will give resistance at about 12190. Those resistance levels are mild, but there is major resistance at the 50% retrace, around 12750. If/when BTC confirms above that level, it will be wildly bullish. On the MACD< you can see that we're still expanding over a bullish crossover, and the stair-step action on the chart looks perfectly constructive. So, that's it. Be aware of an initial pullback at the neckline, and watch for the breakout. This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
On a daily time frame, one thing about chart patterns, especially the head and shoulders is that, the smart-money/whales will not initially allow the pattern to play out easily because they know everybpody can easily see the pattern.
@georgime, Whales, eventually, want to get more money. If everybody lose and quit this market, Whales can't get money. The BTC was down really hard, a lot of people lost their money and left for this market. Right now, Whales want them go back or get more new "small fishes" come. So, the BTC will not go down until the next big bull up.
smashfootball
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Magic - it would be extremely helpful if you gave an actual USD number of what a buy order above the neckline is. What line in the chart signifies neckline? Thank you.
UnknownUnicorn1375590
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@smashfootball, the green line at approx 11610. It's slightly tilted.
smashfootball
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@spin_cycle, Thanks Spin!
goldenfisher
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Hindsight is the best gift. Has anyone *actually* made any money out of this guy?
Please, dude, could you at least use colours that are less 'in your face'? Like some greens and blues? Just saying...
myhrebonus
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@Scali.claudio, if you would follow the guys advice you would have bought litcoin at 105 dollars.. so thosze of us who did.. well we couldnt have been happier.. :))
blessings and love to you all
sergio00
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You are my light in the dark market. I follow you!! it's better to be a small fish in a big pond than a big fish in a small pond if your are in the right side. I @Follow MagicPoopCannon like a fish follow a shark. I am behind him, never in front of his mouth.