rgeddes

BTC UP or Down? Why This Isn't Your Typical Double Top Reversal

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
I stopped writing about BTC /USD because I felt there were enough people writing about it.

This week has been exciting and I think we are at a very interesting point in the market.

Looking at the 1 day chart it looks like we are near the top of what I think is the end of the third wave. If we look at the chart alone its hard to imagine a scenario where we don't dip back down to 6k over the course of the next two months before we reverse back up.

The problem with this scenario is the fact that there is so much buy pressure right now. One major "whale" purchase and the "pile on" begins.

It looks like we are on the right side of the pattern tracing downward - but I dont think we'll break 7200. I think there is too much buy pressure - too many people willing to keep the price above 7200 at this point.

We significantly broke through the long term downchannel before dipping back in. Sometimes patterns don't complete and there are a myriad of non technical reasons to be skeptical of another significant drop.

I would hold at this point - there are many reasons to believe that a turnaround could happen at any moment - and many reasons to believe the current pattern is not your typical Double Top reversal. It's also not a buy a position - we could very well take off from here. If we drop below 7200 its time to re-evaluate but I believe we're going up.

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