BTC USD 4hr Potential Inverse H and S
Bitcoin has been in a severe downtrend for sometime now; however, the latest 4-hour presents a potential reversal pattern (an inverse head and shoulders), as shown by this chart. 


Here are the identification guidelines for the Inverse Head and Shoulders as defined by Thomas Bulkowski: 

Attribution: http://thepatternsite.com/hsb.html

Discussion

Price trend: Downward leading to the pattern

Shape: A 3-valley pattern with the middle valley below the others. The pattern should look like an inverted person's head and shoulders, proportional, and not lopsided.

Symmetry: The two shoulders should bottom near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow).

Volume:Highest on the left shoulder or head, diminished on the right shoulder. Trends downward 66% of the time.

Neckline: Joins the two armpits.

Confirmation: The pattern confirms as a valid one when price closes above a down-sloping neckline or above the right armpit when the neckline slopes upward. 

 

Notes:

This pattern remains unconfirmed. Overall, Bitcoin remains in a very bearish pattern on the higher timeframes. That being said, it may be a bit too aggressive to enter in a short at this point.