Double top and Possible Head and shoulder
Hello All,
Today the market looks weak, it appears like we are going to reach a lower point in order to consolidate. However, this is a double top, we were shy from my goal of 9400-9600 by about 400-600 dollars as price action was only able to make it to slightly over 9003, thus the price target was a gross over estimation on my part. In purple, there is an ascending wedge which broke to the upside, this held as support once it was tested after the movement to 9000 which was a test of the previous support of the pennant which can be seen in yellow, however the second attempt to reach 9000 looked like distribution.
I believe it is highly likely that we will be testing 8600 once again and possible even 8300. If there is an accumulation at the 8600 region, this would mean that there is a risk of BTC forming a shorter term head and shoulder top, at which point, I would be confident in the movement to 8300. However we cannot determine that until the event has already occur and it is simply extrapolation.
For the RSI, the trendline on the 2hr which can be seen in green appears to be broken, and there was a significant failure swing which is denoted by the light blue descending trendline. If price cannot hold this region on the RSI, the failure swing will officially become a divergence. This is correlated to the prior resistance of the rising wedge acting as support.
Best of Luck and stay technical!
Overall Analysis:
Previous Analysis:
Today the market looks weak, it appears like we are going to reach a lower point in order to consolidate. However, this is a double top, we were shy from my goal of 9400-9600 by about 400-600 dollars as price action was only able to make it to slightly over 9003, thus the price target was a gross over estimation on my part. In purple, there is an ascending wedge which broke to the upside, this held as support once it was tested after the movement to 9000 which was a test of the previous support of the pennant which can be seen in yellow, however the second attempt to reach 9000 looked like distribution.
I believe it is highly likely that we will be testing 8600 once again and possible even 8300. If there is an accumulation at the 8600 region, this would mean that there is a risk of BTC forming a shorter term head and shoulder top, at which point, I would be confident in the movement to 8300. However we cannot determine that until the event has already occur and it is simply extrapolation.
For the RSI, the trendline on the 2hr which can be seen in green appears to be broken, and there was a significant failure swing which is denoted by the light blue descending trendline. If price cannot hold this region on the RSI, the failure swing will officially become a divergence. This is correlated to the prior resistance of the rising wedge acting as support.
Best of Luck and stay technical!
Overall Analysis:
Previous Analysis:
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