Traders,
Here we have BTCUSDT 4H chart.
The double top is a frequent price formation at the end of a bull market but we are still in a 100% of a bear market lmao. It appears as two consecutive peaks of approximately the same price on a price-versus-time chart of a market. The two peaks are separated by a minimum in price, a valley. The price level of this minimum is called the neck line at price 6000$ of the formation. The formation is completed and confirmed when the price falls below the neck line, indicating that further price decline is imminent or highly likely. So if we have the second double tops here with the same cypher pattern we will go further below 6000$
The double top pattern shows that demand is outpacing supply (buyers predominate) up to the first top, causing prices to rise and that's the key to have this exact chart. The supply-demand balance then reverses; supply outpaces demand (sellers predominate), causing prices to fall. After a price valley, buyers again predominate and prices rise. If traders see that prices are not pushing past their level at the first top, sellers may again prevail, lowering prices and causing a double top to form. It is generally regarded as a bearish signal if prices drop below the neck line.
The time between the two peaks is also a determining factor for the existence of a double top pattern. If the tops appear at the same level but are very close in time, then the probability is high that they are part of the consolidation and the trend will resume.
Volume is another indicator for interpreting this formation. Price reaches the first peak on increased volume then falls down the valley with low volume. Another attempt on the rally up to the second peak should be on a lower volume and we have the maximum break of red volume on this chart.
We are still in 100% bearish here and expected small double top again at 9000$ and down dive with strong neg volume.
Regards,
Mohsen
Here we have BTCUSDT 4H chart.
The double top is a frequent price formation at the end of a bull market but we are still in a 100% of a bear market lmao. It appears as two consecutive peaks of approximately the same price on a price-versus-time chart of a market. The two peaks are separated by a minimum in price, a valley. The price level of this minimum is called the neck line at price 6000$ of the formation. The formation is completed and confirmed when the price falls below the neck line, indicating that further price decline is imminent or highly likely. So if we have the second double tops here with the same cypher pattern we will go further below 6000$
The double top pattern shows that demand is outpacing supply (buyers predominate) up to the first top, causing prices to rise and that's the key to have this exact chart. The supply-demand balance then reverses; supply outpaces demand (sellers predominate), causing prices to fall. After a price valley, buyers again predominate and prices rise. If traders see that prices are not pushing past their level at the first top, sellers may again prevail, lowering prices and causing a double top to form. It is generally regarded as a bearish signal if prices drop below the neck line.
The time between the two peaks is also a determining factor for the existence of a double top pattern. If the tops appear at the same level but are very close in time, then the probability is high that they are part of the consolidation and the trend will resume.
Volume is another indicator for interpreting this formation. Price reaches the first peak on increased volume then falls down the valley with low volume. Another attempt on the rally up to the second peak should be on a lower volume and we have the maximum break of red volume on this chart.
We are still in 100% bearish here and expected small double top again at 9000$ and down dive with strong neg volume.
Regards,
Mohsen
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Telegram: t.me/MO_Trading
Twitter: twitter.com/MoTradr
