head & shoulders breakdown validated causing massive 12k dump

4 de dez. de 2021

We can see here how this h&s pattern with a downward slant was validated with a massive bearish red volume candle to go with it. However the breakdown target for this pattern was actually 40k and it only reached around 42k. This may likely be because its a bearish pattern happening inside a bull market…it is usually during bull markets that bearish patterns don’t reach 100 percent of their breakdown target and transversely if a bullish pattern fails to hit its full breakout target it is usually when a bullish pattern triggers during a bear market…or at the temporary top of an uptrend in a bull market before a correction. All this being said, there is still a chance for price action to come all the way down closer to the breakdown target of 40k there’s no guarantee the bearish priceaction is over just yet. In act we could still come down close enough to essentially fulfill the breakdown target within a pip or two and still technically make a higher low as long as we stay above 40k. There’s also the possibility o forming a double bottom around that price range as well if we were to go down that low. As for now though at 42k for a pour current wick bottom, it is still a higher low which keeps the bull market in tact. It is not until price action would go under 39k that I we would need to worry about the bull market potentially being over.

12 de jan. de 2022

Nota

The h&s pattern only 2 days ago finally reached the full breakdown target. Click play: