The double top neckline was at 9.4 which we broke by about $1,000 with the push down to 8.4k area. The thing to realize here is we are in a bear market. There are few reasons to say that we are at the bottom at this point.
Technically here are some major bearish indicators on the WEEKLY chart:
1. RSI is negative and no signs of divergence or bottoming
2. Overall down trend.
3. MACD has been turned down and while in positive territory, it's not looking pretty and going to cross soon
Technically here are some major bearish indicators on the daily chart which match with the weekly chart:
1. RSI is negative and no signs of divergence or bottoming
2. Overall down trend.
3. MACD has already crossed and IS in negative territory
On the smaller time frames, things are starting to fall in line which means we will get a further push to the down side. As i am writing this, BTC broke this 9.3k support line and looks to be pushing down to 8400 at least.
At this point, I will be playing any bounces to the upside as we move down. I would look for a minor bounce at these recent lows at 8400 and serious support at the 8k area. I will not be putting lower dollar buys in at 8k as I feel the bounce off of COULD be minimal. Not necessarily that it will be, but that it COULD be. We have already tested that level a few times and if it hits it again it's going to most likely bust through this time. I will be looking to put buys in just above 8k level and moreso in the the 7.4k range for a bounce. The 7.4k area has support and would come close to completing the double top confirmation in terms of symmetry.
I have outlined what I think is the highest probability move at this point. But it will not follow this exactly, as I do not have a crystal ball. We don't know what's going to happen so MAKE SURE YOU MARTINGALE your buys. If this thing starts running you want to be able to have options to buy in lower. Read up on the strategy if you have not already. We already made some scalps while this thing has been moving down.
Don't stress, don't use leverage and pick your points!!
-Sherem
Identifying the double top -
Technically here are some major bearish indicators on the WEEKLY chart:
1. RSI is negative and no signs of divergence or bottoming
2. Overall down trend.
3. MACD has been turned down and while in positive territory, it's not looking pretty and going to cross soon
Technically here are some major bearish indicators on the daily chart which match with the weekly chart:
1. RSI is negative and no signs of divergence or bottoming
2. Overall down trend.
3. MACD has already crossed and IS in negative territory
On the smaller time frames, things are starting to fall in line which means we will get a further push to the down side. As i am writing this, BTC broke this 9.3k support line and looks to be pushing down to 8400 at least.
At this point, I will be playing any bounces to the upside as we move down. I would look for a minor bounce at these recent lows at 8400 and serious support at the 8k area. I will not be putting lower dollar buys in at 8k as I feel the bounce off of COULD be minimal. Not necessarily that it will be, but that it COULD be. We have already tested that level a few times and if it hits it again it's going to most likely bust through this time. I will be looking to put buys in just above 8k level and moreso in the the 7.4k range for a bounce. The 7.4k area has support and would come close to completing the double top confirmation in terms of symmetry.
I have outlined what I think is the highest probability move at this point. But it will not follow this exactly, as I do not have a crystal ball. We don't know what's going to happen so MAKE SURE YOU MARTINGALE your buys. If this thing starts running you want to be able to have options to buy in lower. Read up on the strategy if you have not already. We already made some scalps while this thing has been moving down.
Don't stress, don't use leverage and pick your points!!
-Sherem
Identifying the double top -
Trade active:
First martingale active at just above 8k. Going in VERY light, lot of dumping right now. Targeting 8.4-8.5k if we even see that. It looks like it's going to break this level pretty quick. Looking to go in heavy at 6k.
Trade active:
On a short term basis, this might go up to 8.8k, anywhere in the 8.4k-9k range is an exit point, be quick to get out in case it starts moving down again.