Bitcoin fractal: potential double bottom, strong drop, or a trap
Updated
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After yesterday's drop Bitcoin has formed a similar fractal to what we have seen in July. Chart on the left is July's fractal, on the right is current one. In July price has formed a low at 9071 and then went up quite fast, was rejected on the high and was slowly declining inside a bull flag/descending channel. This time a low was set at 9078 and later price has moved went up quite fast again, was rejected on the high and now moving slowly inside a bull flag/descending channel.
In July bulls have put all their efforts into defending that 9071 low because below that low was located a lot of stops which would be triggered if that level breaks. Eventually after few weeks of sideways price has broke 9071 low, triggered stops and that resulted into 1200$ dump.
Im pretty sure the same is going to happen again. Either bulls should go out of themselves and defend current 9078 low or bitcoin will suffer another strong dump after stops trigger.
There is also the third variant. Stops would be triggered specially by marketmaker, that can be done to buy all that big amount of stops liquidity. So if we see a break of 9078 and then immediately a strong move back up with giant volumes and volatility this will mean marketmaker's trap.
In my public channel we dont have positions at the moment because as you can see there are 3 possible scenarios for the coming half of the day. We are watching price action closely and aiming to see confirmations for one of those scenarios and then open position.
I will post new updates of this idea if anything important happens.
What are your thoughts on it? Lets discuss in comments!
After yesterday's drop Bitcoin has formed a similar fractal to what we have seen in July. Chart on the left is July's fractal, on the right is current one. In July price has formed a low at 9071 and then went up quite fast, was rejected on the high and was slowly declining inside a bull flag/descending channel. This time a low was set at 9078 and later price has moved went up quite fast again, was rejected on the high and now moving slowly inside a bull flag/descending channel.
In July bulls have put all their efforts into defending that 9071 low because below that low was located a lot of stops which would be triggered if that level breaks. Eventually after few weeks of sideways price has broke 9071 low, triggered stops and that resulted into 1200$ dump.
Im pretty sure the same is going to happen again. Either bulls should go out of themselves and defend current 9078 low or bitcoin will suffer another strong dump after stops trigger.
There is also the third variant. Stops would be triggered specially by marketmaker, that can be done to buy all that big amount of stops liquidity. So if we see a break of 9078 and then immediately a strong move back up with giant volumes and volatility this will mean marketmaker's trap.
In my public channel we dont have positions at the moment because as you can see there are 3 possible scenarios for the coming half of the day. We are watching price action closely and aiming to see confirmations for one of those scenarios and then open position.
I will post new updates of this idea if anything important happens.
What are your thoughts on it? Lets discuss in comments!
Note
No surprise price dumped hard after a break of that levelNote
New idea:
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