The Bitcoin rally is over after forming a triple top pattern

BTCCHINA:BTCCNY   Bitcoin / Chinese Yuan
1140 8
Bad things come in threes? My last bearish call was too early and even against my own older prediction (see red arrow on the chart below). But now everything has lined up for a pullback to at least 2600 CNY:

  • Late longs above 3000 CNY can easily get trapped
  • Stock market crash is starting to reverse in a buy opportunity (the 'buy Gold and Bitcoin' theme can fade)
  • intra-day 1 hour chart starts to look like a diamond top pattern

Short entry: 3015 CNY
Stop loss: 3075 CNY
First short target: 2600-2800 CNY
Second short target: 2000-2100 CNY

Sell forecast (red arrow) from two months ago is due
You can't call a top at the peak. It's not a triple top until you've established that the third peak is actually a top. We haven't even pulled back from this one yet, so don't count on this playing out. No pattern has been formed yet because we are still in the middle of a rally.
+2 Reply
ChartArt MoonTrader
There is at least a decent chance that we get this price action again: breakout -> followed by dump -> uptrend goes on as if nothing happened:

+1 Reply
noto1235 ChartArt
itss going up from here ...not a triple top
ChartArt BitcoinGuru
I had a second fresh look at the chart today. Either it doesn't crash now and breaks out immediately higher with a strong rally starting Sunday-Monday (January 10-11) or we complete the triple top pattern.

The weekly and monthly charts look still super bullish, but the daily chart is starting to show signs of weakness with the second day after the breakout already closing lower, as I had expected when I posted the chart.

I can change my mind. But I need to see stronger bulls who buy every dip without letting the price drop at all. Didn't happen so far. On January 8, 2016 we already had a decline far below 3000 CNY (the low was 2071 CNY). If the bulls were stronger they hadn't let this allowed to happen.
I agree, risked short here.
Settlement time is emotional, we will see...

st0re st0re
As long as $400 holds the megabull cycle is still on for me. dont jump to conclusion too quick is my advice : )
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