One of lime and another of sand ...
On the one hand, by now I think that everyone with a "modicum" of trading experience can see the pattern that has formed on the hourly chart.
It is shaped like an "Inverted Head and Shoulders" but its neckline does not give me much confidence since ideally in these cases it should have a downward trend... something like this:
But hey, it wouldn't be the first time we've seen such a pattern be confirmed with explosiveness. Its price target points towards $59,800, however, we should see a volume increase for confirmation.
Second hypothesis and, in my opinion more likely, thanks to @akertxu for opening my eyes, a "Regular Flat" correction, setting 3-3-5. Initially it might seem like a bullish momentum but if the price does not break above the previous ATH I am afraid it will crumble back towards $ 41,000 to rebound strongly from there, or so I hope.
I am not going to recommend to anyone what to do with this in this regard but it would make sense to go to shorts once the price reaches a value close to 55K, always thinking of re-entering once the correction has finished (41k?)...
As always, if the decision is to go short at 55K, a stop-loss above 59K would not be a bad idea.
How would you do it?
Do you trust the pattern recognition or rather a Regular Flat correction?
P.s: Of course, these scenarios do not apply to DCA investors
@toofasteddie
*Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently. Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.
