Head and Shoulders Pattern May Appear on Bitcoin Price Chart
Bitcoin price entered price correction after touching 112K USD. We had not seen this price correction from 76K. So, It may not be a small price correction. Because Bitcoin price went up 50% without any price correction. This is the first price correction after 50% price pump.
Here you can see daily chart of Bitcoin price. Bitcoin broke down mini uptrend line. This is why Bitcoin price went down. It is supported at 103K USD level. It may be the right shoulder of possible head and shoulders pattern. We may see right shoulder in next week. If we can not see higher top on Bitcoin price chart, head and shoulders pattern may start.
Here you can see the indicators on daily chart of Bitcoin price. There were bowl pattern on RSI Indicator. Bitcoin completed the second bowl pattern on RSI Indicator. This is the beginning of third bowl pattern. After price correction, RSI Indicator touched the possible bottom of bowl pattern on RSI Indicator. MACD Indicator reversed down from the top. So, Bitcoin price may go down to bottom of RSI Indicator for mid-term.
If we see the right shoulder of head and shoulders pattern in next week, we may see another price drop in June. We may touch the bottom of possible bowl pattern on RSI Indicator in August..
''Sell in may go away'' motto delayed. Market Maker may sell in June and go away.
We may not see volatility days during Summer.
We will see..
@chorock, thanks for the insightful technical analysis on Bitcoin's recent price correction! I really appreciate the clarity with which you've presented the potential head and shoulders pattern forming, and how you've linked it to the RSI and MACD indicators. The bowl pattern observation on the RSI is particularly interesting and gives a tangible visual for potential future movements.
Your point about the delayed "Sell in May and go away" strategy is well-taken, and the suggestion that June might be the month for a significant move is definitely something I'll be keeping an eye on.
What are your thoughts on how external factors, like regulatory news or macroeconomic data, might influence this technical setup in the coming weeks? I'm curious to hear your perspective! Great post!