The previous text (Green Plum Bo Coin: Three Unreliable Views on Bitcoin (September 5)) is a macro-level discussion. Today, we return to the hourly level, where Bitcoin shows a suspected head and shoulders bottom pattern.
Based on this, there are three inferences:
1. The market is constructing the right shoulder of the head and shoulders bottom, usually the right shoulder is higher than the left shoulder, so the low point of the right shoulder should not be below 108600 USD, otherwise, this head and shoulders bottom pattern may fail.
2. The neckline resistance level is at 113393 USD, and a volume increase is needed here to break through.
3. The theoretical target for the head and shoulders bottom pattern is around 119500 USD.
The operational suggestion is: the stop loss for a short position can be placed below 108600.
