So I've done a basic graph, no Eilliot waves..but mainly based on pattern spotting.
So a lot of TAs have spotted that Head and Shoulders pattern ages ago. But what kind of confused me was why is the right shoulder counted as the red part and not the green part? So I have been thinking whether that BTC would create a red right shoulder (which it has) and then another shoulder next to it...i.e. the green part. For me its only about symmetry and nothing very technical about it. Now if it does do a another shoulder...then hopefully BTC/USD will only fall to as low as the $10k area and then start rising to beyond $12k. The reason why I think the level will be around $10k is because if you look at the left green shoulder...it didn't go as low as the left red shoulder...soI'd expect the same for this right green shoulder.
It's probably likely that it'll drop below the psychological barier of $10k and then bounce back up.
What we should hopefully see is that not only will it bounce back up with a spike...but continue to go up to beyond $12k...the market needs a proper impulsive spike (10-15%) to create FOMO...and not these slow incremental increases with mini corrections. It doesn't cement certainty that the market is now in bull market and new investors aren't attracted by these small increases...after all its highly likely that the majority of investors joined cryptos because of its infamous big increases.
As per usual, this isn't trading advice...its just based on my observations of the market and how I think it might play out. Lets see!
