Friends, there is something I have been observing more and more in the market lately — the crypto market is currently moving like a correlation wonder, and similar technical formations are starting to appear in most coins. The head and shoulders formation you’ve been hearing about lately is becoming particularly important right now. Especially at the end of downtrends, this pattern is a strong indicator that the market could change direction.

The head and shoulders formation is actually an abbreviation for Head and Shoulders Bottom, and believe me, it’s a formation that is quite popular among investors. Since the probability of it occurring is fairly high, it is taken seriously by technical analysts. The pattern consists of three main parts — the left shoulder, the head, and the right shoulder. First, the price drops and makes a low, then it recovers a bit. After that, a deeper low forms, which is called the head, and then the price starts rising again. In the final stage, the right shoulder forms — the price drops again, but this time not as deep as the head.

The most critical point for completing the head and shoulders formation is the break of the neckline. When this level is broken, it strongly signals that the upward trend will continue. Right now, closely monitoring these formations in the market is really valuable because many cryptocurrencies are showing similar movements. If you find my posts helpful, I would be very happy if you like and follow.