BTC/USD was once again rejected at the downward trend line
(denoted in yellow). This is the third rejection which confirms the bearish
momentum. Unfortunately, while BTC
was most recently rejected, it also formed a double top
. Is this double trouble for BTC? I believe so. It is likely that BTC
is just beginning the final leg of a corrective wave which began at $20,000. The first place I will be watching is around $6,000.00. I believe this area will form a strong psychological support. If the $6,000.00 support breaks, there will likely be panic pushing the price down quickly. Currently, I am on the sidelines waiting to see what happens. There are possible opportunities for swing trades after large drops but I feel the risk would not be worth the reward.
This is not investing or trading advice. Make your own decision based on your own research.
Criticism and feedback are very welcome.