Bearish Head and Shoulders Playing Out! 
2025-02-05
Category: None

We're seeing a classic head and shoulders pattern forming on the 1H timeframe, signaling a potential continuation of the downtrend. The right shoulder is rejecting at key resistance, aligning with the Fibonacci 0.236 - 0.382 zone (19.23 - 19.28), adding confluence to the bearish outlook.

🔎 Indicators Confirm Bearish Momentum:
🔻 RSI Bearish Divergence & Rejection:

RSI is rejecting from the 50-55 zone, a typical resistance level in a downtrend.
No bullish strength yet, confirming potential weakness.
🔻 MACD Bearish Crossover:

The MACD line has crossed below the signal line, suggesting a momentum shift in favor of the bears.

The histogram is turning red, further confirming decreasing buying pressure.
Key Levels to Watch:

🚀 Bullish Breakout: Needs to reclaim 19.52+ for a reversal.

⚠️ Bearish Target: Break below 18.52 (0.5 Fib) opens the door to 17.76 (0.618 Fib) and possibly 16.67 (0.786 Fib).

A breakdown from the neckline could accelerate the move lower. 📉 Watch for volume confirmation!

Would you go short on this setup? Let me know your thoughts! 👇

#Crypto #Trading #HeadAndShoulders #RSI #MACD #TechnicalAnalysis