Okay, let’s get to it!
My analysis yesterday showed an that was clearly broken before it even had a chance for liftoff.
If you read my update, I posted a chart right before this drop that outlined the divergence that was taking place and the potential for a reversal forming.
All the signs of a reversal are starting to come together, but obviously we need to watch for key support levels on the way down as well as a breach of the resistance-turned-support line formed from 17k to 11.7k.
First, let’s take a look at the fact that bitcoin broke below the major resistance line (red dotted line) that was formed from the ATH @ ~19.7k down to ~17k.
This line was temporarily breached two days ago, but it didn’t last very long and we are now looking at our next support line below (blue dashed line) formed from 17k to 11.7k.
A break below this line (area highlighted in yellow) will confirm further movement down.
Now I want to go over some of the basic tenets of a top double reversal, but first let me clarify that this formation is not complete until the price breaks below our major support line @ 9.3k (orange line) and holds under this line for at least 3 days.
1.) First peak marks the highest point of the current trend (6k onwards). *Confirmed*
2.) After first peak, the decline to the trough should range from 10-20%. *Confirmed*
3.) Advance back up to the second peak occurs with decreasing , and meets resistance from the previous high. *Confirmed*
Second peak should be within 3% of first peak. *Confirmed with 0.73% difference*
4.) Decline from the second peak should an expansion in and/or accelerated descent *Confirmed*
What we haven’t achieved yet:
5.) A break below the orange support line @ 9.3k that is at least 3% below support or held for at least 3 days.
6.) If break holds, the distance from support break to peak can be subtracted from the support break for our new price target.
Let’s just keep our eye on the price over the next 4 or 5 days before we can confirm this pattern.
We still have several support levels we need to break even before 9.3k, so always be prepared in case this formation doesn’t play out.
I hope you all found this analysis useful and please do not hesitate to leave constructive criticism if you have any objections to this.
Check out the update here:
Check out my latest idea for the 2 long-term pathways that Bitcoin will soon face in the next few days.
I hope this analysis helped everyone with their trades and thank you all for your support =)