BTC DOUBLE TOP-- BEARISH OR BULLISH?????
We had a strong bullish breakout of the bearish channel invalidating the ABC correction.
A close look at the daily candles shows that every dip is bought back up, an indication that the bulls have an upper hand.
We can also see a continuous push towards resistance with a weak or no rejection, an indication that there is price acceptance at that level
The longer this previous high (now resistance) is challenge, the weaker it becomes.
Comparing the current price action, with the previous, the last time bitcoin bounced from the 0.618 fib retracement level and broke above the 21 day EMA (thin yellow line) we saw a bullish breakout of the bearish channel to a new high.
If the fractals repeat (most likely to repeat), and the current resistance give way, BITCOIN is expected to see a new high in coming week with targets at highlighted by the fib extension levels above.
In the event that the current resistance holds (previous high) and price breaks down, I expect a retest of lower support levels.
Levels to watch out for:
Resistance:
69869 (1.272 fib ext)
77653 (1.414 fib ext)
90378 (1.618 fib ext)
Support:
51000 (21 day EMA)
45000 (50 day MA/trendline support)
42900-42000 (0.618 fib retracement/previous high).
NOTE: sentiments are overly bullish, be watchful as a fakeout could take the market in opposite direction of the herds.
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