I saw the potential head and shoulders pattern yesterday in which I drew a blue dotted neckline. Today it got broken downwards instead of bouncing up from the neckline with volume confirmation of heavy selling pressure.
Hence I'm seeing two scenarios where BTCUSD will be headed. Scenario 1 would be by plotting a downward elliott wave which will hit between 100% retracement from the previous upward rally or lower.
Scenario 2 will be looking at comparing the gain from the head of the H&S formation and using it as the prediction for the possible head of the inverted head and shoulder pattern (lowest price, imagine the poorly drawn neon blue line) that BTC might trace in a couple of days before bouncing back again to glory.
This analysis is very open for comments.
Hence I'm seeing two scenarios where BTCUSD will be headed. Scenario 1 would be by plotting a downward elliott wave which will hit between 100% retracement from the previous upward rally or lower.
Scenario 2 will be looking at comparing the gain from the head of the H&S formation and using it as the prediction for the possible head of the inverted head and shoulder pattern (lowest price, imagine the poorly drawn neon blue line) that BTC might trace in a couple of days before bouncing back again to glory.
This analysis is very open for comments.