Double Top with fractal recurrences.
Updated
Instead of completing the potential Cup and Handle formation yesterday, the price of Bitcoin decreased further and is now resting upon the neckline of a Double Top. There have been large spikes of selling volume at a couple of key levels which have ended in pennants before the trend continued downward. These pennants may also be interpreted as miniature Double Tops and serve to show that as the bulls attempt to maintain support bears are overwhelming the market as soon as RSI shows some movement away from being "oversold". This is further evidenced by the large amount of selling volume at these particular points. It would be impossible for a trader with a large enough volume of BTC to offload his stack in a single order. So what these people have to do is sell in stages. Hoping for a brief recovery in price so we can sell at a particular level. This is preferable to filling every single Buy order on the market, but occasionally this happens. Which is what the large red spikes are indicating. A person with a substantial hodling is selling at market value. The trick is to avoid scaring the market into further bearish descent before you are finished offloading your coins.
I believe this bearish trend will continue. Especially if we see a break below the neckline at approximately 8900 USD. The price could continue to fall until strong support is found, possibly at the 6000 dollar level but this has already been tested once. I'm not sure that the price will recover as quickly following an additional test of this line.
However, if the support at 6000 is strong we'll be observing an newly formed Double Bottom pattern. Which could give bulls more hope.
My personal opinion is that we are in the midst of a crash pattern and over the coming months may see the price of BTC return to 2000. I believe smart money may be trading on key levels but will wait to re-enter the market as 'hodlers' until Bollinger Bands show decreased volatility.
To those of you who had endured the crash of 2014, you have seen all of this before. The market sentiment is very similar and would appear to me that we are exiting a phase of denial and gradually moving towards accepting the fall of the market. This does not mean that BTC won't increase in value again, but the last time this occurred it took two full years for the market to recover.
Perhaps this will signal the "Flippening" and BTC dominance will become less significant. As more alts are trading for fiat pairs they lose their reliance upon BTC as their primary means of being traded. This would be the best possible scenario for projects and coins which are objectively superior to BTC. To decouple completely from a failing project which has been undergoing an exhausting civil war for half a decade would benefit the entire industry immensely.
Until that day comes, and our coins are freed of the oppressive and baseless price action of BTC, I believe the entire industry will suffer heavy losses.
I'm taking this as an opportunity to re-enter the markets at a lower price point and make a substantial amount of money / build my stores of the coins I truly believe in. Just sitting around "hodling" through a crash is not only foolish, but an abandonment of potential profits.
I believe this bearish trend will continue. Especially if we see a break below the neckline at approximately 8900 USD. The price could continue to fall until strong support is found, possibly at the 6000 dollar level but this has already been tested once. I'm not sure that the price will recover as quickly following an additional test of this line.
However, if the support at 6000 is strong we'll be observing an newly formed Double Bottom pattern. Which could give bulls more hope.
My personal opinion is that we are in the midst of a crash pattern and over the coming months may see the price of BTC return to 2000. I believe smart money may be trading on key levels but will wait to re-enter the market as 'hodlers' until Bollinger Bands show decreased volatility.
To those of you who had endured the crash of 2014, you have seen all of this before. The market sentiment is very similar and would appear to me that we are exiting a phase of denial and gradually moving towards accepting the fall of the market. This does not mean that BTC won't increase in value again, but the last time this occurred it took two full years for the market to recover.
Perhaps this will signal the "Flippening" and BTC dominance will become less significant. As more alts are trading for fiat pairs they lose their reliance upon BTC as their primary means of being traded. This would be the best possible scenario for projects and coins which are objectively superior to BTC. To decouple completely from a failing project which has been undergoing an exhausting civil war for half a decade would benefit the entire industry immensely.
Until that day comes, and our coins are freed of the oppressive and baseless price action of BTC, I believe the entire industry will suffer heavy losses.
I'm taking this as an opportunity to re-enter the markets at a lower price point and make a substantial amount of money / build my stores of the coins I truly believe in. Just sitting around "hodling" through a crash is not only foolish, but an abandonment of potential profits.
Note
I have revised my charts Fibonacci retracement to contain the recent lowest low and highest high. The 50% Fib line has been broken. The downtrend will continue.
The market players are still in denial. More and more of them are moving through the other stages of grief. But, eventually, they will reach acceptance. This is when the price of BTC will reach its true bottom.
Good luck and God Speed.
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