BTC/USD, XAG/USD (Silver): Technical Outlook, Edition #42 (05/07/21)
Head and Shoulders on Bitcoin... or a potential liquidity grab from Market Makers? Let's assess the situation and feature Q's first spotlight on Silver for the weekly trading session ahead
Bitcoin retreats to uptrend support after yet another rejection from USD 36K
This bearish price action has shaped a sloped head and shoulders; one can observe the right shoulder forming below on the H4 BTC/USD chart.
Bitcoin, BTC/USD - 4 Hour (H4)
The 'Head and Shoulders' (HnS) is a widely-known bearish pattern within the trading community.
However, its reliability when it comes to a BTC/USD reversal is the bane of their existence.
An obvious HnS becomes tasty bait for Bitcoin Market Makers (MMs), who are often short-squeezing inexperienced traders betting on a drop to suck in their liquidity.
Should USD 33.5K fail to hold, we forecast a bullish bounce off uptrend support (and/or short squeeze) along with a potential breakdown.
When Bitcoin and the overall crypto markets are looking choppy, particularly as alts wait for BTC/USD to make a move, we like to extend our view into other markets for opportunities…
Q's Spotlight: Silver (XAG/USD)
Silver (XAG/USD) is looking ready for a reversal up to USD 27/Oz but currently faces some short-term resistance.
Any pullback may be an excellent opportunity to continue staggering entries if bulls sustain a re-test from this most recent breakout.
Silver, XAG/USD - 4 Hour (H4)
See you again for the next update. - q
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