Welcome Binance Square members! Are you ready for a comprehensive and clear explanation of BTC setups with all the details? Let's go! 😄
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🧠 What is the head and shoulders pattern?
The classic head and shoulders top is a bearish reversal pattern, sloping upward before the peak forms. It is characterized by:
Left shoulder - initial high, then decline
Head - higher high, then down
Right shoulder – similar to the left shoulder
Neckline - a support line connecting the two lows
A drop below the neckline indicates the pattern and suggests a potential decline of about the distance between the head and the neckline.
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🛠️ BTC analysis setup (according to TradingView chart)
The chart indicates a textbook setup:
1. The left shoulder, head, and right shoulder are clearly formed.
2. The neckline is approximately at $90,700 (according to Saxo Bank's trend line).
3. A confirmed break below the neckline would validate the pattern.
4. Target drop = the distance from the head to the neckline (~$90,700 – $73,000**.
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🎯 What you should watch for and how to trade
Entry: after **confirmed close below the neckline (~$90,700)**
Stop loss: just above the right shoulder (around $94,000 - $95,000)
Target price: around $73,000 (≈ the distance between the neckline and the head)
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✅ Tips and best practices for Binance Square platform
Following Binance's comprehensive educational guide with some friendly reminders:
Confirmation across multiple time frames - daily, 4 hours, etc.
Use proper risk management:
Stop above RS
Determine position size wisely
Trade only what you can afford to risk
Wait for a clear breakout - false breakouts are common. Volume confirmation is key - look for strength in the decisive move.
This is not financial advice - do your own research
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⚠️ Why this setup is important now
As the price of Bitcoin approaches $94,000, it is near the neckline - any drop below $90,700 could lead to a quick reversal
Precise timing could get you in near the breakout and ride a 20% slip to around $73,000
If the price of Bitcoin reverses, the right shoulder may remain above the neckline - a warning to invalidate the rise!
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✨ Head and shoulders checklist
The observed item?
Remove three peaks ✅ Yes
Draw the neckline (~$90,700) ✅ Yes
Has the breakout been confirmed? ⬜ Pending
Volume confirmation 🔍 Keep a close watch
Stop loss above RS ✅ Ideal
Target ~ $73,000 ✅ Expected
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💡 Final thoughts
The setup is a classic textbook - strong entry, SL, and target
Make sure to monitor trading volume and confirmation signals
Even if the breakdown fails - and the price of Bitcoin rises - that's a win too!
Stay calm, keep track of your accounts, and always manage risks 😊
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Let's trade smart, friends!
Feel free to share your thoughts or questions - we're here to learn and grow together! 💬🔗
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Disclaimer: This is for educational purposes only, not financial advice. Always ensure to pick the right time and trade cautiously.