Hello, today I wanted to bring you an update on Bitcoin. The BTC, after undertaking an uptrend, stopped the climb with a retracement. The retracement arrived in the RESISTANCE 2 area, an area already reported by me as a possible price retracement area. The price subsequently went to test the SMA200, forming a nice pattern of technical analysis that is, the double bottom.
This pattern is particularly beautiful, in fact at the formation we had a concomitance of the formation of the pattern and the presence of a divergent RSI. The entry in this case took place at point 1, also excellent from the point of view of the RR. To date, the price after retracing the $ 52,000 area, has continued its descent, going to test the SMA200 again in point 2.
As for the current situation, we have the formation of a beautiful symmetrical head and shoulders. In this case one can think in the short term gone to trade it on the formation of the completion of the pattern. As for me, I have two signs that bring me a statistical advantage in my operation.
In particular: Signal 1: The price has touched the 61.8% level of the AB leg of the descent, in this case we can think of a completion with the formation of the CD leg, in fact the parameters for the formation of the pattern are respected. Signal 2: In case of completion of the head and shoulders, the break of the neckline would also coincide with the SMA200 and the resistance line, so if there were to be a break and the price were to position itself below that structure, then we would have greater probability that the price will continue to fall.
