60K is a final check

24 giu

Morning guys,

Today BTC hits 62.50$ - our downside XOP target on daily chart (see previous update), and 62.50-64.2K area was mentioned as the one where potential right arm of big reverse H&S pattern should be formed.

Nominally, this pattern is still valid, but today I show you performance on 1H chart that clearly shows problems for bulls. Normally, when market is ready to go with the bullish context - it shows very logical action, completing downside targets, forming bullish reversal in predefined place. Now take a look - as H&S as 3-Drive patterns have failed. This is bad sign for bullish context.

This is the reason why we do not consider any long positions again, and prefer to watch for 60K support area. Because this is last chance for the bulls. Downside breakout will open the road to 50-52K area. Once 60K area will be touched - watch intraday charts. Market has to form bullish reversal pattern if bulls still control situation.

I set this idea as "neutral", because to qualify it as bearish we need 60K downside breakout. At the same time I can't call it as bullish because of reasons specified above.