Short the retest of the blow-off top formation in Bitcoin
The BTCUSD has made a blow-off top after a parabolic advance to just a couple hundred dollar below 20,000. The parabolic rise is very typical to all speculative bubbles which I have seen multiple times in my life.
This parabolic advance has trapped a great deal of unsuspected speculators which creates heavy overhead supply. I see price finding resistance at the first supply area, which coincides with the 61.8 fib of the whole decline (measured by highest and lowest open/close not the wick). I see price moving lower from here (but I could be wrong on that) based on what I see from the price action.
The down side target is 10733 then followed by 8327.
The main obstacle for the extended move to the downside is that the buying interest is still quite buoyant below 14,000 mark. In order to fend off the buy interest, it is most likely, on the way down, to run higher again to trap more longs on the wrong side, and then break decisively to the down side.
This parabolic advance has trapped a great deal of unsuspected speculators which creates heavy overhead supply. I see price finding resistance at the first supply area, which coincides with the 61.8 fib of the whole decline (measured by highest and lowest open/close not the wick). I see price moving lower from here (but I could be wrong on that) based on what I see from the price action.
The down side target is 10733 then followed by 8327.
The main obstacle for the extended move to the downside is that the buying interest is still quite buoyant below 14,000 mark. In order to fend off the buy interest, it is most likely, on the way down, to run higher again to trap more longs on the wrong side, and then break decisively to the down side.
Comment:
Buyers stepped in at the 14000 level. Now it is time to swing higher again to build bearish energy for the next drive to the down side. The next down side move is going to target the liquidity pool rests below 12000 mark.