2nd stage - 55-56K level

Morning everybody,

We follow the same trading plan that we've discussed last week. As you could see on 4H chart - our H&S now is taking more evident shape. Pattern could be used twofold. First is as trading setup, second - as indicator. As a trading setup it is for those who intend to buy BTC and trade on intraday charts. Here it provides classic rules - long position could be considered around right arm's bottom, for instance - when AB-CD pattern is completed. But in general, 55-56K area is the one where upside action could start, if BTC is bullish indeed.

Second - 55K area is an indicator. While price stands above it - everything is good. But in a case of downside breakout H&S fails, which, in turn means drop below the head, which in turn means downside breakout of daily wage pattern and - starting of stronger downside retracement. So, downside breakout of 55K could be treated as bearish signal for those who intend to sell BTC.