The numbers marked on the chart for 4 hour timeframe of Bitcoin (BTCUSD) are discussed in the commentary below.
(1) Current (active) bullish price channel in Bitcoin ever since August 14, 2018. The channel also incorporates part of the head (H) and right shoulder (RS) of an inverted head and shoulders (or head and shoulders bottom) formation as indicated on the chart.
Price moving along the channel could possibly see a test of the bottom of the channel at ~$6,382.40 before bullish momentum resumes.
(2) ~$6,632.50 marks the confirmation of the inverted head and shoulders bottom. The point of invalidation after confirmation of the pattern is a close below $5,866.70; the price low of the head (H).
(3) The relative strength index (RSI) as shown here indicates that the current bullish momentum is almost running out, and it is therefore best to wait for further development in price action before initiating any long (buy) position(s).
(1) Current (active) bullish price channel in Bitcoin ever since August 14, 2018. The channel also incorporates part of the head (H) and right shoulder (RS) of an inverted head and shoulders (or head and shoulders bottom) formation as indicated on the chart.
Price moving along the channel could possibly see a test of the bottom of the channel at ~$6,382.40 before bullish momentum resumes.
(2) ~$6,632.50 marks the confirmation of the inverted head and shoulders bottom. The point of invalidation after confirmation of the pattern is a close below $5,866.70; the price low of the head (H).
(3) The relative strength index (RSI) as shown here indicates that the current bullish momentum is almost running out, and it is therefore best to wait for further development in price action before initiating any long (buy) position(s).
