Significant Drops in BTC after each Double Sell Warning
Each time the DBT MoMo has triggered a Double Sell Warning on the Daily time frame for BTC there has been a significant drop in price.
The first double sell warning we saw was on the top of BTC which led to a massive 70% correction, but here I illustrate the last three warning signals on BTC.
The first warning on this chart came around the end of April. This signal led into a bear div on the MoMo and created a 42% correction. The second warning we see is around the end of July which led to a 31% correction. Now we are seeing a third warning signal which has already led to a 18% correction.
If the past signals are showing us anything it is that we are not done yet and we could see at least another 10% correction downward before it finds support. Keep in mind that this scenario is much different than the previous warning signals due to where BTC currently is. The previous peaks were quite extended before we saw the warning signal, but this warning signal came after testing yearly support and BTC was not as extended as it was the previous two signals. This correction could be much weaker than the previous ones or we could be heading further down below 5800. Only time will tell.
The first double sell warning we saw was on the top of BTC which led to a massive 70% correction, but here I illustrate the last three warning signals on BTC.
The first warning on this chart came around the end of April. This signal led into a bear div on the MoMo and created a 42% correction. The second warning we see is around the end of July which led to a 31% correction. Now we are seeing a third warning signal which has already led to a 18% correction.
If the past signals are showing us anything it is that we are not done yet and we could see at least another 10% correction downward before it finds support. Keep in mind that this scenario is much different than the previous warning signals due to where BTC currently is. The previous peaks were quite extended before we saw the warning signal, but this warning signal came after testing yearly support and BTC was not as extended as it was the previous two signals. This correction could be much weaker than the previous ones or we could be heading further down below 5800. Only time will tell.
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