Here are two potential scenarios for Bitcoin:
Bitcoin is currently forming a Head and Shoulders pattern on the chart, which could play out as follows.
**First Scenario:** The Head and Shoulders pattern completes. This requires the second part of the right shoulder to finish forming and the price to break through the neckline, which acts as resistance and would trigger a buy signal.
**Second Scenario:** Be cautious with Head and Shoulders patterns. If the pattern fails to complete, Bitcoin's situation could turn very bearish.
Therefore, the strategy is:
- Buy if the price surpasses the neckline resistance, setting a stop loss just below this level.
- Sell, with a stop loss just above the resistance, if the pattern fails to form.
