This is not an instrument that I actively trade but as a student of Technical Analysis and due to the hype prevailing on this instrument, It has become a point of interest to see if what I have learnt so far can be applied to any market (so far stellar             results. Thank you Trade Empowered/Tier One mentors) and this instrument is proving to be a perfect testing ground.

This is a multi time-frame analysis so please bear with me.
So looking at BTCUSD             on both the Weekly and Daily time-frames, this instrument has over the last few months (well since February 2018 really) been establishing a series of lower highs and retesting the zone that lies between the weekly lows (5870’s) and Daily lows (6070’s) setting up what is in essence a Descending Triangle formation.

Avoiding insulting your intelligence by trying to give my rendition in the form of a detailed explanation into the rationale and expectations of a Descending triangle , we drop down to the 4H time-frame, and looking at the most recent price action, we are visited with the very common and reliable Head and Shoulders price pattern.
Using one of the most common methods of determining targets for a head and shoulders pattern, it is interesting to see that price could potentially fall to the Daily lows as measured from head to neckline and then transposed in anticipation of a neckline break out.

IF this anticipated/predicted decline translates into a break of the Daily and potentially Weekly support levels as mentioned above, this instrument is predicted to see potentially significant declines from anywhere between 2970’s and 170’s price levels, using similar target measuring principles to that of the head and shoulders for the Descending Triangle (see included weekly chart). However that still remains to be seen as we could just bounce back higher on retest of support at the 6070’s level.

So, first thing’s first, lets see IF price can first break the neckline of our identified head and shoulders pattern, reach our measured head and shoulders target and then see how price reacts at the lows.