The Dump Continues
As I mentioned in my recent post, I have been waiting for a truly significant dump in the BTC price. I closed all my long positions today in very minimal profit, as I saw that there was insignificant strength to push BTC above 40K in the short-term. These positions were opened at 33K in the recent drop to 31K! Due to the fact that this head and shoulders pattern has begun to form on the 4 hourly chart, a break above 40K is the only salvation available to BTC.
Sideways action can also invalidate the pattern but that is clearly not taking place. When you read what the charts are currently communicating, it becomes clear that this head and shoulders pattern has a very high likelihood of playing out.
A measured move would indicate a drop all the way down to approximately 20K, provided the pattern reaches completion. Head and shoulder patterns do have a habit of not always reaching the exact measured move, so there is the possibility that BTC can get a bounce at 22K or 23K, if the neckline gets broken and the pattern is triggered.
There is always the hope that the bulls can somehow manage to push back but it is looking rather weak at this point.
This is just a very quick update to my subscribers. Be vigilant and stay focused, as this is a very sensitive scenario that has the ability to affect the price action quite severely. This is not financial advice.
