Hello traders,
Here's a BTC chart on daily and weekly time-frame. On the weekly as you can see we are still stuck in-between two levels of support and resistance that were covered weeks ago, and it looks like we still are failing to break either above or below this area, thus forming some pattern that it appears to be a double-top or a "M" formation.
Even though this indicates a further downside movement, we need to take it down to the lower time-frame and look up for a confirmations and also better entry levels.
On the daily, we broke below the ascending trend-line and came back exactly to the 9600 region that I highlighted it as "the neckline" from the last week's head and shoulders analysis. Now more than ever this pattern looks possible, since retesting the 'neckline' I see BTC to push upside once again and re-test the trend-line that we just broke before heading lower for pattern completion.
Taking this into the consideration I highlighted the $10150 region as it correlates well with previous daily support and also with the trend-line, thus I see this area as a very decisive one.
If we show weakness upon reaching this, we could be seeing a downside push back to the neckline level of 9600. A break below this level will take us to $8000 and that would mean a H/S completion on the daily and a Double Top Completion on the weekly.
If you're willing to enter short, it would be wise to wait for the trend-line retest on the daily as mentioned above, so you'll have a much better entry with tighter stop loss.
Here's a BTC chart on daily and weekly time-frame. On the weekly as you can see we are still stuck in-between two levels of support and resistance that were covered weeks ago, and it looks like we still are failing to break either above or below this area, thus forming some pattern that it appears to be a double-top or a "M" formation.
Even though this indicates a further downside movement, we need to take it down to the lower time-frame and look up for a confirmations and also better entry levels.
On the daily, we broke below the ascending trend-line and came back exactly to the 9600 region that I highlighted it as "the neckline" from the last week's head and shoulders analysis. Now more than ever this pattern looks possible, since retesting the 'neckline' I see BTC to push upside once again and re-test the trend-line that we just broke before heading lower for pattern completion.
Taking this into the consideration I highlighted the $10150 region as it correlates well with previous daily support and also with the trend-line, thus I see this area as a very decisive one.
If we show weakness upon reaching this, we could be seeing a downside push back to the neckline level of 9600. A break below this level will take us to $8000 and that would mean a H/S completion on the daily and a Double Top Completion on the weekly.
If you're willing to enter short, it would be wise to wait for the trend-line retest on the daily as mentioned above, so you'll have a much better entry with tighter stop loss.
