⚠️⚠️⚠️ IMPORTANT !!! This Scenario Is Not Confirmed Yet ⚠️⚠️⚠️
Frist, let's revise some facts:
- The market in general is not a monolithic entity but a complex system of individual, professional, and institutional investors, each making decisions based on their own views and interests, but somehow all of them is believing on the "moon" soon or later.
- When assets rise very quickly in price, typically this makes a crash much more likely. Or at the very least a correction, when the price falls back down to a more “normal” level.
(and btw no one knows what is the "normal" level for Bitcoin)
- Where Bitcoin is heading next is equally unpredictable and everyone is just trying to predict the future.
That was a long formal introduction, but I was just trying to prepare yourself for any bad or ultra bad situation 😅
Looking to the last bull trend and comparing it to its historical performance, specially the last ATH, there is something difference,
every time bitcoin make a new ATH, Bitcoin pump hugely but this time bitcoin just crashed and we saw a 2.5B+ long liquidations in minutes 🔴
Looking to the chart on weekly frame, we can see a double top pattern is forming on Bitcoin.
⛔️What Is a Double Top? How can we trade based on it?
➡️A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs.
based on the Bitcoin chart We can see the first top formed at 1 Apr 2021, the second top formed at 1 Nov 2021 and the neckline is around 31900.
We have everything now to identify the double top and play according to it.
but double top formations are highly effective when identified correctly. However, they can be extremely detrimental when they are interpreted incorrectly. Therefore, one must be extremely careful and patient before jumping to conclusions.
so, this pattern is not valid till the bitcoin became under the neckline at 32k weekly.
If double top formed and confirmed by closing under the neckline, that mean we are definitely changed the general trend for the first time and we will see a huge panic that will drive us to a fall that NEVER happened before and we may see very low number like 20k, 10k and 5k or even lower, no one really know.
but given its volatile nature, it is possible that bitcoin will gather momentum again at some point in the future (perhaps weeks, months or even years down the line).
But no one has a crystal ball so it’s impossible to say for sure.
The best thing you can do is to not depend entirely on this market in your investment and you must stick to a tight stop loss and risk management strategy.
Let's Discuss the potential of this scenario, will it happen soon or it's too early to say that?
Take care 🌹
Frist, let's revise some facts:
- The market in general is not a monolithic entity but a complex system of individual, professional, and institutional investors, each making decisions based on their own views and interests, but somehow all of them is believing on the "moon" soon or later.
- When assets rise very quickly in price, typically this makes a crash much more likely. Or at the very least a correction, when the price falls back down to a more “normal” level.
(and btw no one knows what is the "normal" level for Bitcoin)
- Where Bitcoin is heading next is equally unpredictable and everyone is just trying to predict the future.
That was a long formal introduction, but I was just trying to prepare yourself for any bad or ultra bad situation 😅
Looking to the last bull trend and comparing it to its historical performance, specially the last ATH, there is something difference,
every time bitcoin make a new ATH, Bitcoin pump hugely but this time bitcoin just crashed and we saw a 2.5B+ long liquidations in minutes 🔴
Looking to the chart on weekly frame, we can see a double top pattern is forming on Bitcoin.
⛔️What Is a Double Top? How can we trade based on it?
➡️A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs.
based on the Bitcoin chart We can see the first top formed at 1 Apr 2021, the second top formed at 1 Nov 2021 and the neckline is around 31900.
We have everything now to identify the double top and play according to it.
but double top formations are highly effective when identified correctly. However, they can be extremely detrimental when they are interpreted incorrectly. Therefore, one must be extremely careful and patient before jumping to conclusions.
so, this pattern is not valid till the bitcoin became under the neckline at 32k weekly.
If double top formed and confirmed by closing under the neckline, that mean we are definitely changed the general trend for the first time and we will see a huge panic that will drive us to a fall that NEVER happened before and we may see very low number like 20k, 10k and 5k or even lower, no one really know.
but given its volatile nature, it is possible that bitcoin will gather momentum again at some point in the future (perhaps weeks, months or even years down the line).
But no one has a crystal ball so it’s impossible to say for sure.
The best thing you can do is to not depend entirely on this market in your investment and you must stick to a tight stop loss and risk management strategy.
Let's Discuss the potential of this scenario, will it happen soon or it's too early to say that?
Take care 🌹
