In my yesterday’s post I mentioned that when Bitcoin comes down around $5600 or $5550 then I might be tempted to open another long position.
While Bitcoin did in fact fall all the way down to $5512, the head and shoulders pattern which has now formed on the hourly has me slightly worried that this is only the beginning of a bigger downward move.
All in all it looks rather tempting to go long because the Relative Strength Index is showing overbought signs although it’s not quite at the extremes yet of 30 and below. Furthermore MACD has not yet crossed upward. Far from it, the mouth is actually pretty wide.
And obviously there’s the head and shoulders candlestick pattern. One can’t simply ignore that, am I right?
Should the daily candle form a solid doji, I bet there will be further down movement the next day. $5400 from where I’m looking at doesn’t sound impossible at all.
This post was written by ynef