Bitcoin head and shoulders

Well this break down of the head and shoulders pattern has definitely caused a stir in the crypto world. For the ones that are new to this space it could be a panic inducing drop. For the veterans of the crypto space this is an expected and often welcomed event since bitcoin is currently on sale. Below is the head and shoulders pattern and the break:

So is this the bottom? That’s the question. The short answer is.. possibly. The larger scale shows the potential for a larger head and shoulders pattern to play out:

While this is unlikely, it is still in the realm of possibility. So, what does this mean for bitcoin? My personal opinion is that it’s business as usual. There is nothing that has happened up to this point that convinces me that any fundamentals have changed or that overall sentiment has soured. This is simply a correction that occurs at the end of a cycle. These corrections are the strongest since they are measured using the length of all of the impulse waves of the cycle combined. Where are we going? Until there is a clear signal that the market is turning around, this is still a bullish market with plenty of upside potential. For those new to the crypto world, don’t let these moves shake you from your holdings. Learn some technical analysis so you are aware of how the markets move. These moves usually are a second chance to get a larger position at a discounted price.

That’s my take for tonight. Please do not construe this as financial advice, these are my opinions and are not intended for anyone to act upon.