I wanted to post another quick update on my idea that I have been sharing with you for the past week.
It looks like the reversal formation is still in play as the 9.3k-9.5k neckline region was re-tested and BTC failed to break through it.
Most reversal formations undergo a re-test of the neckline and that is what appears to be happening here.
I also wanted to make note of the declining during this rally up, showing the bulls are losing momentum.
Another thing to take note of is the hidden divergence that has showed up, yet another sign we are heading further down.
If this neckline breaks once again and the price can hold at least 3% under the neckline or hold for a significant period of time,
then our target range is still within $6.9k-7.1k, with the possibility of the 7.2k-7.4k range being the first bottom we hit.
If you like my ideas, please show me some support!
Thank you! =)
Take a look:
I am still paying attention to both upper resistance trendlines for points of reversal, as we need to break past the dashed blue line first then finally the dotted red line to break out of the overall downtrend that started from Dec.15th onwards. If this formation is truly a double bottom then we should expect the price to reach the upper dotted red line before the next move.
Looks like bitcoin is still following my path down to the target price range, despite the unexpected 2nd re-test and subsequent breakthrough of the support (turned resistance) neckline. I expect to see a bounce off this target price range (anywhere from 6.9k to 7.2k) but this does not mean we are out of the woods just yet. I want to emphasize the fact that the target price range for a double top reversal does not signal a point for trend reversal, although it may happen. This is simply here as a point of reference for the conclusion of the double top reversal and any trades from that point forward will require new analysis. I am not going long until there is a clear trend reversal confirmed with bullish indicators.