BTC double top pattern formation

Mar 14, 2018

We can see a clear double top formation on BTC with top at 11.7k and resistance at 9.7k. We can also see that after breakout price retraced back and then continued down. Bearish reversals do not require as much volume during breakout as bullish reversals and the fact that we see high volume here goes to show the strength of the reversal. The minimum target price would be around 7k and the maximum target price would be 6k (start of previous uptrend/last low). Nevertheless, we can see there is a significant uptrend line before 6k where price has bounces 3 times already in the previous year. Region between 6 and 7k could be a good entry point for long positions.

What do you think of this analysis?

Mar 30, 2018

Trade closed: target reached

Minimum target was reached and we are currently at a strong uptrend support. If this would have been a trade I would probably cash out 60 to 80% of the entry and left the rest for a while to see if price drops to 6k.