Bitcoin is breaking above key horizontal S/R and IH&S neckline. The target is the ATH.
While I expressed concern about the lack of a selling climax in my last post (BTC Morning Star Bullish Reversal) and felt that the sell-off was quite constrained, the on balance volume indicator seems to be at odds with that conclusion and suggests that, to the contrary, there was a notable climax to the selling. In addition, as we clearly see in the chart above, we indeed got the follow through we were looking for on the morning star reversal, and that it actually took BTC up to the key horizontal S/R where it had been consolidating until a couple of hours ago.
The hourly chart below outlines the inverse head and shoulder pattern that formed just under the key S/R level.
Next stop, all time highs . . . theoretically . . . that’s the target measurement, but not all patterns go to target. Can’t tell you what to do – can only tell you what I see – but if it’s any help to know that I’m long up to the gills, then so be it! (If I’m wrong, I lose money of course.)
Please leave your comments, input, questions, etc., below!
