BTC: Double top formation could play out!
Updated
Based on the double-top formation, it seems apparent that the price may decrease. If the price falls below the critical support zone, there could be a potential downward move to 18k. Additionally, due to the DXY's strengthening, it is expected that the price of btc will decrease shortly.
Furthermore, Keeping an eye on the fair value gap and CME gap below current price levels is prudent. These gaps tend to get filled at some point, and the way BTC looks now, the gaps are expected to be filled soon!
It is important to underscore that absolute certainty regarding market direction remains elusive. However, multiple indicators currently align to suggest a bearish market sentiment.
Notably, the current inversion of the yield curve has reached magnitudes reminiscent of the conditions observed in 1928. This historical parallel is concerning, as it casts unfavorable implications for the overall economic landscape.
With regards to the BMS band:
In previous years, the bull market support band (b.m.s. band) has been an excellent indicator of a shift in the market.
When the price gets below the band, the price tends to get into a bear phase. And when the price breaks above and holds above the band, the price tends to start a new bullish trend.
As of now, the price has closed below the b.m.s. band for the first time this year. This potentially marks the start, or some would say continuation, of the downtrend that many people had been discussing.
In my humble opinion, this confirms a more significant downtrend. The market has shown a lot of weakness for the past many months.
I'm expecting 21k at first and 15k after that. For now, one should stay away from Altcoins as they can drop another 70-80% should BTC drop a lot further.
With regards to DXY
In the past few weeks, the DXY index has been showing some strength, and the current bullish momentum is amplified by the price breaking above the falling channel!
It is reasonable to mention that the index is currently approaching a high resistance zone, and if that zone is broken, the index could be seen at the 108 level.
The reason why the DXY is so interesting to watch is due to the fact that Stocks and cryptocurrencies have an inverted price action to DXY. DXY can, therefore, be used as an inverted indicator to tell the possible direction of Stocks and cryptocurrencies.
Stocks and cryptocurrencies are expected to go lower if DXY keeps its bullish momentum and keeps rising.
Furthermore, Keeping an eye on the fair value gap and CME gap below current price levels is prudent. These gaps tend to get filled at some point, and the way BTC looks now, the gaps are expected to be filled soon!
It is important to underscore that absolute certainty regarding market direction remains elusive. However, multiple indicators currently align to suggest a bearish market sentiment.
Notably, the current inversion of the yield curve has reached magnitudes reminiscent of the conditions observed in 1928. This historical parallel is concerning, as it casts unfavorable implications for the overall economic landscape.
With regards to the BMS band:
In previous years, the bull market support band (b.m.s. band) has been an excellent indicator of a shift in the market.
When the price gets below the band, the price tends to get into a bear phase. And when the price breaks above and holds above the band, the price tends to start a new bullish trend.
As of now, the price has closed below the b.m.s. band for the first time this year. This potentially marks the start, or some would say continuation, of the downtrend that many people had been discussing.
In my humble opinion, this confirms a more significant downtrend. The market has shown a lot of weakness for the past many months.
I'm expecting 21k at first and 15k after that. For now, one should stay away from Altcoins as they can drop another 70-80% should BTC drop a lot further.
With regards to DXY
In the past few weeks, the DXY index has been showing some strength, and the current bullish momentum is amplified by the price breaking above the falling channel!
It is reasonable to mention that the index is currently approaching a high resistance zone, and if that zone is broken, the index could be seen at the 108 level.
The reason why the DXY is so interesting to watch is due to the fact that Stocks and cryptocurrencies have an inverted price action to DXY. DXY can, therefore, be used as an inverted indicator to tell the possible direction of Stocks and cryptocurrencies.
Stocks and cryptocurrencies are expected to go lower if DXY keeps its bullish momentum and keeps rising.
Note
Something to note: Cash has a higher yield than stocks for the first time since 2000. Historically, it’s a signal for market tops
Note
With regards to MATIC 
Note
Note
Based on current market sentiment, it appears that a downturn is on the horizon. This could result in revisiting prior lows (15k-16k) or even reaching new lows within the range of 10k-13k. However, after this decline, there is a good chance that the market will shift towards a bullish phase. My prediction is that BTC will reach its lowest point within the next six months, but recovery is expected by Summer 2024. It is recommended to have a strategy in place for this potential downturn.Note
Experience our top-tier setups with our Premium Group for only 129$ Lifetime membership!
🎖Telegram: t.me/MBM_786kr🎖
🎖Telegram: t.me/MBM_786kr🎖
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.