We are still waiting for a massive breakout in Bitcoin (BTC).
Our view is that a head and shoulders bottom is morphing into something powerful. Instead of an H&S bottom with a downward sloping neckline, it is turning into a head and shoulders bottom with a rising neckline (Figure 1).
You won’t find this pattern in a book. It is unusual.
The way to trade it is to wait for a break of the neckline (~$4,200). Then, if there is a retest of that point, and the neckline acts as support, then the ensuing bounce becomes a major buying opportunity. If the resistance of the neckline becomes support, the pattern will be “confirmed.” IF (key word) you get a confirmed breakout from this pattern, the ensuing rally could be vertical in nature.
Bottom Line: Patience is still a painful virtue in Bitcoin (BTC). But a time may come when you can buy BTC and get a lot of upside gratification much like what happened in ETH. Join me in the Crypto.IQ trading room as we plot the tactics for the possible breakout.