Bitcoin Perspective: Reference 1H
On Monday, it was mentioned that if Bitcoin is blocked in the 916-919 range, it would be a good time to short, and then around 690 is also where to set half of the take profit to break even. Unexpectedly, a small-scale right shoulder rebound of a head and shoulders pattern formed later.
Currently, it seems that Bitcoin is subtly following the head and shoulders pattern, and according to the normal progression, once the head and shoulders pattern breaks out, calculating 1:1, Bitcoin should at least reach around 760.
However, it is important to note that if you think the current structure is bearish, then the 0.618 rebound + the left shoulder's head and shoulders neckline cannot be broken. Once it breaks, the trapped positions above will be released.
In other words, the most important resistance level currently is in the 727-728 range, with the 0.618 rebound + neckline resistance, which absolutely cannot be broken. If broken, the head and shoulders formation below will be established; if not broken, the secondary high point of the bearish structure will be established.
So if you are currently bullish, pay attention to the breakout of the head and shoulders pattern below and wait for a pullback to stabilize, then you can chase a long position, setting the stop loss around 705. If it breaks 728, continue to hold; if it doesn’t break, exit immediately without hesitation or set a break-even stop loss. If you open a long position at the current price of 712, set the stop loss at 703, but opening a long position directly now is more of a left-side gamble on its breakout.
For shorting, pay attention to the 727-728 range; if blocked, short directly, with a stop loss of 800-100 dollars. Only trade on the right side; it’s best not to set limit orders. $BTC
