For a relatively long time, the Bitcoin's price has been moving between some levels and forming whether a corridor or some patterns. The easiest pattern you can notice on the chart is H&S, there are a lot of traders who opened SHORT positions just because they saw this pattern, will definitely return to this topic a little bit later. Besides H&S, we need to pay attention to MA & EMA lines. At the moment the price is located above Moving Averages, which is a strong bullish sign, the market needs to keep holding above these levels to continue upward movements.
Well, it's time to make the situation clear. What setup will be best to reach $9000 in the short-term? In the near future, we have to see a small rebound from the resistance $8375, it will look like the H&S pattern really works. The market will dump to the strong support $7955 and turn upward to the area of the right shoulder top. Due to this movement, we will see a partial closing of SHORT positions. Important thing: the price needs to hold above Moving Averages. Then, if the price breaks through the resistance at $8375, we can see a smooth growth up to $9000 area. In case the price breaks through the $9000, we will see a HUGE FOMO effect.
If we look at the situation a little bit closer, we will understand that we have opportunities to earn not only on LONG but on SHORT too. Two important levels that can trigger SHORT are $7955 and $7460. If the price break through these supports, it would mean that it will definitely fall lower. I want to remind you that we can consider H&S as finished one only in case the price break through the basis of both Head and Shoulders. By "breaking" I mean breakdown and holding there for some time, it will confirm that it is not a fake breakdown.
Anyway, globally we are in the bullish market, SHORT patterns fade away more and more often. Even when we see them, they look very fake, while LONG pattern always looks very strong and what is more important - natural. Better not to SHORT, but to look forward to an entry point to LONG.
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Bitcoin needs a correction down, I will short this H&S. Understand that pattern is very obvious, but in any case it will work out.
MichaelEssing
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@Robert_Mercer, bro lol are you kidding? open short during a bull market is a dead, as it was written in this idea - better not to short a bull market.
LittyKimmy
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@MichaelEssing, I am ready to average my short as long as it needed. just my position, I don't make you to open this position, just sharing my thoughts
samuraiben
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@Robert_Mercer, why would someone short btc when bakt launches on july 22? i get a lillte yesh, but still the fundamental analysis is bullish why take the risk?
johnnylegrande982
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Tooooooo much conditions, if this - then this, if that - then that. Come on man, why can't you just share one direction to follow? It is impossible to trade.
BillCharison
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@johnnylegrande982, I have already told this, but will repeat now. Trading can't be always as simple as one arrow upward or downward. You need to observe the price behaviour and notice things that can help you with a decision about position's direction. There are always different conditions that you have to keep in mind. My goal is to describe all things you need to watch.
Edgy_
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Hey buddy, happy to give you feedback as you: Good analysis overall with showing the different options. You're right about the H&S being confirmed only through the break of the neckline (this goes for any patterns btw, very important point that beginners misunderstand). But nonetheless, for higher R:R setups, sometimes one can already play setups in ancitipation of a breakout, which is not a breakout strategy in that case, but in the case of the H&S a 'top fishing', whereby you sell the top of the *potential* right shoulder already. If it doesn't see follow-through, of course you close the position.