Currently, we are facing very risky trading and a number of open positions rises which a sign of market weakness or rising interest in BTC. The double top seems so obvious that it will probably not happen in the classical form in general, I observed that as market progressed classical patterns like pennant or flags gradually did not reach expected ranges or reached it with troubles as well as a fake breakthrough. Fibonacci along with Elliot theory is not matching very much with the chart.
Then maybe indicators?
MACD: 4h still higher heights, but the end may be near +
DMI: 4h still looks good, but that can change really quick +/-
ROC: 4h already gave a lot of incorrect sell signals since 3500 level - clearly does not work here + /-
Volume: In a favor of bulls moves lately +
Long vs short: more money in short, which is good as traders are mostly wrong, although the total value of longs increased lately. +
I bet on going ATH in the next day or two days, small correction already took place, some traders already lost their nerves and sold so the bunch of hidden sell orders is smaller now. Classical double top is not very likely now as cooldown on some heads was applied, maybe head and shoulders or gravity effect if current state will last too long, but I think that most of the people loaded with shorts have stop order somewhere around 5000-5050 so there may be a violent breakthrough up to 5200 with many ups and downs so I suggest not tighten your stops immediately after it will go above 5000, wait some time as some several thousand BTC sell orders may be hidden nearby as well and bring down the price level for a while, for that scenario I suggest stop around 4700.
If bears win and that will really be a double top or reversed head and shoulders then say hello to 4000 level soon again or even 3000 or the bitcoin bubble bursted on 12 October :)
Then maybe indicators?
MACD: 4h still higher heights, but the end may be near +
DMI: 4h still looks good, but that can change really quick +/-
ROC: 4h already gave a lot of incorrect sell signals since 3500 level - clearly does not work here + /-
Volume: In a favor of bulls moves lately +
Long vs short: more money in short, which is good as traders are mostly wrong, although the total value of longs increased lately. +
I bet on going ATH in the next day or two days, small correction already took place, some traders already lost their nerves and sold so the bunch of hidden sell orders is smaller now. Classical double top is not very likely now as cooldown on some heads was applied, maybe head and shoulders or gravity effect if current state will last too long, but I think that most of the people loaded with shorts have stop order somewhere around 5000-5050 so there may be a violent breakthrough up to 5200 with many ups and downs so I suggest not tighten your stops immediately after it will go above 5000, wait some time as some several thousand BTC sell orders may be hidden nearby as well and bring down the price level for a while, for that scenario I suggest stop around 4700.
If bears win and that will really be a double top or reversed head and shoulders then say hello to 4000 level soon again or even 3000 or the bitcoin bubble bursted on 12 October :)