The Bitcoin although a cryptocurrency is also very liquid tradable instrument on a various trading platforms. The fact that we now have Bitcoin futures traded on the CBOE (Symbol XBT) is making it now the financial instrument and the trading principles and trading technical analysis must be applied for trade entries, when you are trading with it, buying and selling and when you have it and you want to cash it.
So what can we see now on the Bitcoin chart applying trading technical analysis? On the H4 chart, visible is the so-called Head and Shoulders formation, formed by the price action indicated by the candles. This is the bearish formation usually and is formed at the market top or near the market top. It has the head and two shoulders as the humans have it, and the neckline. The neckline is important for a break of the price action lower. You can see all of this in the chart below.
Now in the case that we have a close below this neckline, in the given indicated period of 240 minutes, then we will call this formation confirmed and you should look for a target lower based on the height of the neckline to head, as shown on the chart below.
On the clear full candle break below the 13000 level, we could see the target of this formation in the 8500-9000 zone. This is the take profit zone for bitcoin traders, sellers and is also the buying zone for the new traders that want to by the Bitcoin.
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