For those wondering what the heck a head-and-shoulders formation is, here's a quick reference:

http://www.investopedia.com/terms/h/head-shoulders.asp

You draw a line between the start of the first 'shoulder' and the other, using the peak value of the head to the line as a projection to where price might end up. So, like the example above, the distance between the peak and the 'neckline' is taken and overlaid from the neckline downward.

You can also have the inverse, where the projected price from the neckline would be higher. Only problem is that chart patterns are highly subjective. There's been a lot of research into this area, most notably done by Mr. Nison regarding candlestick charting - but the main point is even though you can 'see' a head-and-shoulders, doesn't mean that it will behave like one. This is also the main pitfall of Elliott Wave theory, but that is a whole other can-of-internet-worms.

Personally, given how the market is in its infancy - I don't really see major downward factors here unless the trendline expressed over at http://bitcoincharts/charts/ (mtgoxUSD) gets breached on the downside. It may be easier to see if you tick the checkbox 'Log Scale'.

Put on your seatbelt, you've seen nothing yet folks.