Retracement is still on the table as Double Top is possible
Morning guys,
The whole last week we were watching for price action around major daily resistance that actually includes major 1.618 AB-CD daily target, major 5/8 Fib resistance and daily Overbought.
Normally, such combination suggests at least some moderate pullback, say 3/8.
It creates two different setups for bears and bulls. Those who wants to buy should wait - it is not good idea to jump in at daily resistance and overbought. Thus, wait for either some pullback, at least 3/8 or upside breakout.
If BTC breaks strong daily resistance without response this shows some hidden strength and suggests upside continuation.
Bears should be focused only on tactical, short-term trade in current circumstances. To take a position we need clear bearish pattern that we do not have yet.
Last week we watched for H&S, but it was not formed as BTC has failed to form right arm of this pattern.
But, while market stands below the top - it keeps chances on retracement. Another pattern that could be formed is Double Top. Right now we see puny wash & rinse of first top - this is very typical action for D. Top pattern.
And this is the moment to make a decision on short entry against recent top, if you have bearish view on the market.
The whole last week we were watching for price action around major daily resistance that actually includes major 1.618 AB-CD daily target, major 5/8 Fib resistance and daily Overbought.
Normally, such combination suggests at least some moderate pullback, say 3/8.
It creates two different setups for bears and bulls. Those who wants to buy should wait - it is not good idea to jump in at daily resistance and overbought. Thus, wait for either some pullback, at least 3/8 or upside breakout.
If BTC breaks strong daily resistance without response this shows some hidden strength and suggests upside continuation.
Bears should be focused only on tactical, short-term trade in current circumstances. To take a position we need clear bearish pattern that we do not have yet.
Last week we watched for H&S, but it was not formed as BTC has failed to form right arm of this pattern.
But, while market stands below the top - it keeps chances on retracement. Another pattern that could be formed is Double Top. Right now we see puny wash & rinse of first top - this is very typical action for D. Top pattern.
And this is the moment to make a decision on short entry against recent top, if you have bearish view on the market.
ForexPeaceArmy BTC analytics :
forexpeacearmy.com/r/author/11/sive-morten-blog
FX, GOLD:
forexpeacearmy.com/community/forums/sive-morten-currencies-and-gold-video-analysis.122/
forexpeacearmy.com/r/author/11/sive-morten-blog
FX, GOLD:
forexpeacearmy.com/community/forums/sive-morten-currencies-and-gold-video-analysis.122/
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