Hello dear friends,
Here is my latest idea for Bitcoin and I hope you like it.
As you all can see, a head shoulder formation has formed but at the moment it is not quite clear which is the neckline, neckline 1 or neckline 2. We won't know for sure until the pullback to that neckline takes place.
Personally I think it will be the orange neckline 2 but again it is not certain due to the spike on December 4 in the price. The end results is however for both much lower targets.
Clearly this is no longer a bullish scenario unless the price manages to get above the black neckline with some candles and good volume. Anything is possible in the price of crypto which is (thankfully) so volatile.
The previous HS had hit the exact target before going up like a rocket on July 21, 2021.
So keep a close eye on the necklines and the volume. This should rise when the trend is up and vice versa for a downtrend.
Panic has not occurred at all so clearly no bottom either.
I have written it a few times but do it again because it is very important than only looking charts. You always have to know what is happening in the world and if that can be a treat to the markets.
Currently we have many serious problems in the world. Here are some of them:
1. The Omikron virus that is spreading at lightning speed and possibly going to overload hospitals. Even though far fewer people are getting seriously ill, many more will need to go to the hospital.
2. The dangerous situation at the border with the Ukraine and Russia. There are harsh words on the part of Russia and Nato / EU / US. Russia's list of demands such as withdrawal of weapons in Poland and Ukraine and possible membership of Ukraine in NATO will never be met. Russia even threatened a kind of Cuba crisis!
3. The unimaginably high inflation of 6.5% in the EU and the need for higher interest rates that will hit the stock market hard. All the printed and cheap money has to go back out of the market and then we all know what will happen. Largely all this money is in the markets through funds and banks and not where it had to be namely in the smaller, mid and bigger companies.
4. The gigantic debt mountain that has now become so astronomically high due to the various crises like the housing crisis and now Covid where even more debt has been incurred.
5. The stock markets in the US at their peak! Normally stocks rise 10% per year but we are now at an average of 30% or more during the period of the added FED and EU money!
6. The refugee crisis in Europe and all the problems around it.
I wish you all very good luck and profit from your trading!
Disclaimer This is my view, no advice to buy or sell. Also always do your own research!
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