Bitcoin making a double Double top

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
As you can se here i have put both the high from past 2 weeks next to each other. We can see the moves are a bit similar as well. The waves and the shape it has right now.

The stop hunts on the left have become clear in hindsight, since we took a 1500/2000 point dive think there is no doubt about that assumption. Past days it looks a bit like we have seen a similar move. We do miss out on another clear stop hunt around 8300, but i have placed the second green at yesterday's high.

Assuming this double top theory is correct, we should not get above the 8100ish anymore, actually not even above that blue trend line actually. If this plays out and we drop again, the same scenario's as mentioned in my previous analysis are in play. That is:

1) Making a real double top with the neckline around 7000 giving a target around 6000
2) Making a triangle, so bouncing up again from the 7500/7600 zone.

The 7700 seems to be the key support level now. If that one breaks and we see a high volume panic break of the support, the triangle version will probably fail. If we see normal volume , as we can see the past days with the 200/400 point drops, than we could see it turn up again. So volume is probably the best indicator here to follow in case we drop below the 7700.

In the middle we can see that wedge which was the start of that big short squeeze rally back to the 8K's. It's support was at 7200. No assuming this short squeeze was forced, we can assume that if this level breaks, it will be a sell sign as well. Because there was good support there, so we should see the same people buying it up once again. So my assumption is, that if that 7200ish breaks, it will confirm the short squeeze rally was manipulation (to short at the highs) and that we will dump even more.

About the triangle, it's always important to see several touches of the high of a triangle formation. The move to 8300 can be seen as a touch of the triangle. So, if the market is able to break the 8100ish again and once again touch the 8300/8400, the triangle version will become more likely as well. I personally think it would be too soon to see it move up to 8400 within the coming day or 2. Think it would be much better to make another higher low first around 7500/7700 and then slowly attack the resistance again. So in other words, even if we see a bullish outcome coming weeks, it should take another few days before we really break up.

Now it's easier to look down (at least short term), as long as we stay below the 8100ish. If this level breaks, doesn't mean we will simply go up, but see it as neutral ground then and that the double top analysis will become less likely.

Don't forget to like if you appreciate this :)

Previous analysis:
Comment: Was a strange move earlier today, where a 10 mil market buy on Bitmex which triggered the market to squeeze up almost 200 points even. It was a bit odd, even more because we simply dropped again shortly after. Anyway, the resistance zone around 8050/8100 did it's work and we have even touched the 7500 just now. At the moment we are seeing another decent bounce up, already 230 points up from the low.

On the right we can also see it bounced up precisely from the triangle support line. Keeping the triangle still alive at this point. As long as we stay below the 7800/7850, chances for an even bigger drop are still higher. If the 7850ish breaks, bears will still be slightly in favor. Above 8100ish we can think the bulls are in favor again.

Usually, to see if the triangle is real, it's better to see another retest at least. So better to just go back up to 8000. See it as if the market wants to double (or triple) check if the support is real before going up again. If it just goes up from here, it could be just shorts taking profit again, which isn't the best foundation. Just look at some triangles (no matter which asset) on similar time frame and you will see what i mean with this.

So i think, the bulls want to see something like the blue line. The bears simply want to see a bear flag and the 7500 breaking

Comment: Following the blue line to the point so far. But this can just as easily be a bear flag. So, for the bulls:

The first red needs to break quickly and the one around 7800/50 as well eventually. This last one is an important one for the bulls.

For the bears:

If it stays below the first red zone around 7700, it can easily drop again. If we see it drop towards the low again without even breaking the 7700 first, it will become very likely to see the support around 7550/500 break and seeing it dump even more.

If the bulls can prevent a drop and keep price inside the triangle for like another day or so, then we could see it bounce up eventually. So short term, bears are clearly in favor

Comment: Extra Bitcoin analysis, bigger picture:

Comment: So it's like a moment of truth coming day or so. Bounced up from that support of the triangle and so far it looks to be doing okay. However, volume is not really great of this move up. It's still inside of the consolidation, but i think it's still too low for what it should be if we would see a real attack to break up from the triangle.
Also that curved line on the left might have some weight on the market as well. So a break of 8000 will be a decent step for the bulls. The 8100 is still an important level to break. If that one breaks, chances will increase for the bulls.

Also have a small channel of this move up today. But even if it breaks, there is room for a higher low around 7720/60. A break of that level won't be any good for the bulls.

So bears are still in favor and will be as long as we stay below the 8100ish.

Comment: Bulls are holding it so far. Break of that channel got turned into a small wedge. Volume also increased with this last push. So to be honest, at this point it's less clear if the bulls or bears will win this fight of the 8100ish resistance.

Some alts have improved but from my small list more are still behind. Also seems we have that curved blue line as well now, something to watch. Only real sensible thing i can say is, that if the 8100 breaks, we need even more volume. Should reach the orange circle on the left chart. Otherwise it would not feel good and real enough for me. First support is around 7900 now and i think a more important one at 7800.

Comment: New Bitcoin analysis:

If you want to support me, my affiliates:

Bitcoin futures trading, 10% discount:
For copy trading FX at Etoro:
Public Telegram Channel
You are hands down the best TV user to show pattern recognition and stop hunts. Love following you guys. We're expecting to see a drop as well but are currently long in case the price shoots up and keep going as a fakeout. Short trade alert is set up and ready to trigger. We did a shoutout to you guys in a recent video and just want to say again, thanks for amazing TA guys!
+1 Reply
Double-Top, DENIED! Ascending Triangle (aka Your Moon launchpad).

P.S. Bulgaria accumulated over 100k bitcoin. Guess who’s next???


+2 Reply
mmmp12 dralerte
@dralerte, Bulgaria didn't accumlate anything. Fake news chasing again.
They seized from criminals 200K BTC...
@mmmp12, Is that so? Than the question is, what will they do with those 200k, hodl? :)
mmmp12 botje11
@botje11, Probably yes, because it's very hard to liquidate such amount of BTC. Probably even OTC deals wouldn't cut it.
There would need to be sort of OTC auctions every week for a year probably to sell it all.

And if they would use exchanges for this, it would be a blood bath, with such slim order books. Thus I don't see, that they could do it.

From one point it's great wealth, having so much BTCs, but from the other hand - it's very hard to sell, because it's very illiquid asset.
@mmmp12, Still...

You can now pay AT&T phone bills with crypto. See for yourself:


Now... This is just one of many bits of good news in store for Bitcoin.

That said, I stand by my belief BIG (and smart) money has already accumulated a substantial amount of crypto and are now going through a major markup cycle.

Furthermore, the larger falling wedge pattern (easily seen on the weekly) is a very strong pattern (already in motion) and is in confluence with the current ascending triangle (clearly visible on 4 & 6hr, respectively).

Thus... Not sure it would be wise to part with your Bitcoin as this level.

And still, the way we ripped through 6K on the way up was quite telling. There wasn't any real pause for such a major technical (and psychological) level. Not even a hiccup on the weekly.

Taking all this into account plus the fact we are trading above all major moving averages, choosing to short here would likely result in providing the added fuel necessary to break above 8400.

Many Bears are looking at the chart with a bearish lens and are consistently using the past, yet are not realizing Bitcoin has been pretty much been making a mockery of their bearish calls for the last 10 weeks and counting.

We have been 'overbought' for a while now...

All I can say is, what may be expensive expensive for 'mom & pop' is likely still fundamentally cheap for those who know more than the general public.

Price action is king, and for the moment, the price is still going up...

However, I do invite all the Bears reading this to short, since I can assure you... your blood will not be wasted.

Happy trading!

mmmp12 dralerte
@dralerte, I didn't say anything about price action or my bias, and you still automatically assumed that I have such.
I just correct you, because there are many fake news in this space, that nobody else wanted to correct - probably, because that's easier for them to believe in fake informations, and don't check.
Btw. "paying" in BTC mostly means that it's automatically being converted to fiat, like AT&T did with Bitpay. Don't know if exactly "hodlers" wants this - the fewer people cash out, the better cause for all them.
Key resistance broken, room for long positions after the pull-back!

Great Job @botje11 !

+1 Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Help Center Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing TradingView Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out