BTC - Short-Term Double Top?
Updated
As everyone is jumping on the BTC bandwagon now and will be through 2018, I'm beginning to work full-time to understand the best ways we can make the most out of this epidemic. One part of this is the TA & FA discussion and so here is my first post!
In the 30min view, it seems we have created two tops on 02/12 at 01:00 and 09:00 indicating we have a rising wedge (bearish pattern!). After the sell-off which started on 29/11 this indicates there is some pressure on the BTC price after a bull run with such high velocity. This could be forming a double top here before falling further.
On the other hand, there is a continued demand increase for BTC from new investors (Coinbase are breaking even more records for daily registered users!) and also Bicoin Futures have just been announced to open on 16/12. The demand is so crazy and the exposure that it's getting is crazy. A lot of people are asking me at work about BTC and how to invest and that's when you know this is becoming general knowledge!
Personally, I think the increase in demand is going to support the price. The reversal on 30/12 seems to be because of the high demand and Bitcoin Futures and I'm expecting this to carry BTC past the resistance at $11,300 and continue the bull trend. So here's my plan. If it does break resistance, I will be adding to my position and aiming for the 1.618 Fib and then planning the next move. If it doesn't break, then I will be aiming for 0.5-0.382 Fib to buy more as I believe the demand will support the BTC price and we may enter a short term consolidation phase.
Thanks for reading! Please comment with your thoughts and feedback!
Note
The pattern looks like it has changed now from a rising wedge to a descending triangle. Both of which are bearish patterns anyway but I am still holding that the demand for BTC is going to keep the price from retracing below the $10,000 level.
As shown on the chart, if it does bounce off the $10,000 level, we could see an ascending triangle form which will be the bull flag.
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