Oct 04 - CRYPTOCHARTING DAILY - Focus on Bitcoin

BITCOIN

SHORT TERM

Yesterday I showed the breakout of the ascending trendline, underlyining the importance of support at 4230$.

Today we are facing two different scenarios, so we have to be prepared to face both of them in our investment decisions.

SCENARIO 1

Support at 4230$ holds and Bitcoin go on moving sideways, in the channel between 4230$ and 4270$. In this case, it would be profitable to enter at current prices, but I suggest a stop loss not far from here.

SCENARIO 2

Price goes under 4230$: we will have a double negative signal. 

The first one is the breakout of support and the second one is the completion of an "Head & Shoulders" pattern. 

In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end.

This pattern also gives indications on price target, calculated as the difference between top of the head and neckline. In this case it would be at 4029$, as you can see on chart.

MEDIUM TERM

Nothing changed from yesterday, so you can find the analysis here:

Oct 03 - CRYPTOCHARTING DAILY

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