Bitcoin (BTC) Price Update: Possible Reversal Coming?

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·@devytan·
0.000 HBD
Bitcoin (BTC) Price Update: Possible Reversal Coming?
Hi guys!

If you read [my post yesterday](https://steemit.com/bitcoin/@devytan/bitcoin-btc-price-update-small-pullback-or-another-possible-crash). I mentioned a small hammer candle.

> If you take a look at the previous candle there, it looks like **a hammer candle** which signals a reversal of a trend (although the size is quite small). So, there is a probability that bitcoin might have a pullback and retest the support* (fib channel) around $10,800.

Although bitcoin **had quite a pullback**, it seems like bitcoin *found a support around $10,400*. And so, here are my thoughts on bitcoin for today.

## BTC - 4 Hour Chart
Tools used: **Stochastic RSI** and **Drawing Tools**
![5a8e3320a7998.png](https://steemitimages.com/DQmabSeYqZM3y3KzP3CeNNQDTVWzguWWdMvKPs86YGswrTY/5a8e3320a7998.png)
The **stoch RSI** is showing **a start of an upward momentum** so it looks like *bitcoin might recover for a bit*. Now take a look at a pattern that is forming right now on the 4 hour chart. 

If this *head and shoulder pattern is completed* in the next couple of days we might see **a short term downtrend**. For **a confirmation of this head and shoulder pattern** bitcoin should **rally** to **around $11,200** then have **a pullback** to *complete the neckline* **around $10,400**.

However, **if bitcoin keep rallying above $11,200** then this *head and should pattern* is **invalid**.

## BTC - Daily Chart
Tools used: **Fib-Channel**, **Stochastic RSI** and **Trendlines**
![5a8e37bceb965.png](https://steemitimages.com/DQmZY8GrvYiqbCzvHahTDa1HEgd665diDCDVXHGjwfnPTSN/5a8e37bceb965.png)
If the *head and shoulder pattern* I mention above is **completed** and *bitcoin have a breakdown*, bitcoin might find a **support around $9,400 price area**. Check out how many times this line has made a contact with the price action.

Now on the other side, if bitcoin *breakouts from this current resistance* (**$10,700 - $10,800 price area** since this was a prior support turning resistance now). Bitcoin might have **a rally** to the upside **retesting $11,800 resistance**. 

**Happy trading** guys! Hope you **make lots of money** today!

## Disclaimer
You know the drill guys. This is just opinion and not a financial advise. Do you own research and decide your own trades. Cheers!
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