ZuluTrade Blog

Is Bitcoin creating the right shoulder of H&S pattern?

Market View | Tuesday, February 27, 2018 9:45 AM GMT

Yesterday a financial event went viral to social media. The Circle, a firm backed by Goldman Sachs Group, acquired the digital token exchange Poloniex, one the larger crypto-exchanges in the market. Circle holds an app-based peer-to-peer payment network using blockchain. Crypto-market was anticipating for a catalyst in order to regain the desirable volatility and investors’ interest.

In the daily TF, BTCUSD is bouncing to the upside again after a short-term correction. We have noted an interesting pattern which can boost the bullish momentum. There is a potential reversed Head & Shoulders pattern but not completed. It is currently creating the right shoulder. The king of crypto will activate the pattern and a major upside target if it performs a valid break out of the neckline.


Heading to the hourly TF, it is currently reaching the 61.8% Fibonacci retracement level. This may hold the buyers temporarily. As long as the price stays above 200 SMA, the trend is bullish and traders may use any setback as buying opportunities.


(EMA = Exponential Moving Average, SMA= Simple Moving Average
5EMA=Blue, 21EMA=White, 200SMA= Yellow)

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