Short

BTC Retracing To The Double Top Neckline!

Updated

HI All!

BTC is continuing to show bearish signals, popping out temporarily from the downward channel only to be pushed back down not long after. We are almost at the end of the tunnel but i believe we are in the midst of forming a symmetrical triangle inside a much larger symmetrical triangle (depicted in the red trend lines). We have a little bit of flesh to give the bears before the 2018 bull run begins, so lets get into it.

As you can see on the hourly BTCUSD chart we have formed a nice double top pattern. Breakout was confirmed below the neckline and we are seeing a retracement to neckline around the 8270 level. Following the pattern i am estimating a breakdown further to the 7300 level, this should shake out the remaining weak hands allowing us to move into full bull mode. All Ichi indicators are continuing to support bearish signals as secondary confirmation to the pattern.

There is further potential to breakdown to the long term trend line at approx. 7000 range, if we fell through this bottom level we could potentially see a large drop to the downside target of the infamous 5000 levels.

Setting my entry around 7400, trade safe.

Not trading advice, not a financial planner, consult before investing.

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Breakdown has begun, we look to be forming a bear flag which supports the move to the downside, updated chart to come.

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As we can see on the four hour chart we have broken down after the retracement of the double top pattern and have begun our descent to the downside.

A bear flag has begun to form which upon successful completion will push down to our target area of 7300

<a href="tinypic.com?ref=34djtbt" target="_blank"><img src="i66.tinypic.com/34djtbt.png" border="0" alt="Image and video hosting by TinyPic"></a>

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My long term position moving forward with BTC after this bounce

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UPDATE:

Momentum continues to the downside with small bearish pattern formations providing the volume for a bearish cross over on the MACD, we have seen a few bear flags and pennants form on the smaller time frames (5M) as we move towards our target zone.

The double top pattern has set its target towards the 7200 support line and all signs continue this way for the time being.

We are currently sitting on a major support trend line based off the log chart at 7700-7800 zone , the next major support sits at the 7200 target zone based on the linear chart. If we give up the 7200 zone to the bears we could be falling to some new lows, if it holds i would expect a strong bounce to the upside off this level.

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We have bounced off a major support line on the log chart and have entered what could potentially be an accumulation zone between 7800 and 8200.

There are some bullish indicators (MACD and RSI steadily supporting the upside but are quite weak) BUT at this stage they are only projecting short term results, further confirmation will be available in the coming hours as we look to be channel across the accumulation zone under the resistance of the 200 EMA as a decision is forced between the major trend lines.

Whichever way we go i am expecting a big pump in either direction, the next few days will be interesting.

Trade closed: target reached

Welcome back everyone!

On our most recent update we can see that the bottom support of the long term symmetrical triangle has broken down, the bulls failed to accumulate enough momentum to push us off the danger zone and we have subsequently fell once again in line with the original double top pattern.

The target of my double top has been reached as you can see below at the 7300 support trajectory and as such this trade is closed off.

Be sure to follow my page for future updates in the crypto space.

basementTrading

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