38K still...

Morning folks,

So BTC has shown nice reaction on our H&S pattern, showing another collapse down, barely has not reached major 38K support that was an our target. Currently we have to say that 38 still "IS" our target. Despite that we have nice upward bounce, we treat chances for V-shape reversal now and direct upward continuation as "low".

There are few reasons for that. First is too strong and fast downside action that has solid momentum. Second - price is going to very strong resistance area around 45K and, finally, intraday performance that stands week. All these moments make us still keep an eye on another leg down to 38K level.

It means that if you would like to buy BTC, it would be better to wait for either upward breakout of 46K level or completion of our scenario around 38K. For the bears - you could consider short entry around major resistance with stops above it. The major advantage of this setup is very tight stop, so the risk is minimal but reward might be very significant, if we right and BTC returns later to 38K, finally to complete it...

Take care.
S.