Bitcoin looks like its going to attempt to retest the broken neckline of the head and shoulders pattern that it formed. The neckline is also located very near the trend resistance dating back to June. Today we saw a drop to the 0.236 fib level and a quick bounce back up. I would expect Bitcoin to continue to respect the fib levels, thus some key price points to look for are 53.8K - 51.3K - 49.2K - 47.2K - 44.3K. I dont know if Bitcoin will have enough steam to break above both the head and shoulders neckline as well as the long term trend resistance. If it does fail to break above those points but does at least reach them, then we would likely form a double top. If that is the case I would expect a drop to 51.3K at the minimum and 44.3K at the max. The Greed/Fear Index currently sits at extreme greed. It would make sense to squeeze out those who took late short positions before wrecking those who take long positions at resistance, but since this is Bitcoin we are talking about WHO KNOWS!
For the moment I am going to sit on the sidelines and wait for BTC to show some signs of weakness near resistance before opening a short postion. Until then I will just sit back and enjoy the action!
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For the moment I am going to sit on the sidelines and wait for BTC to show some signs of weakness near resistance before opening a short postion. Until then I will just sit back and enjoy the action!
Thank you for viewing my post. If you like these kind of ideas - follow me for more!