I know it might be a bit early and the time frame is relatively short but I can't help it and point out that a double top pattern formation is shaping up !
Double Top Chart Pattern
- A double top forms when the price makes a high within an uptrend, and then pulls back
- It's called a double top because the price peaked in the same area twice, unable to move above that resistance area.
You can see from Chart 1 in order to have a double top we need to have an uptrend, two tops (which effectively are the current resistance) and we also need a neckline (The new support)
Here you can see more clearly what is needed for a double top. Now look what we have on the Bitcoin chart !
It looks pretty similard to me. Obviously the double top pattern is not confirmed yet and it is quite early to speak of it. For it to be confirmed we need to break the neckline (support) at ~9500$ and around 8600$ it will be validated. However this is very interesting to watch and gives you additional perspective.
If we look at the whole picture we are still looking good for some bullish movement - we are above all major moving averages and this might be a little pullback, so BTC can regain some energy to finally break this 12k level. I personally have a very small position on ETH juts to back my own words with some $. What good is my analysis if I can't back it up :) Overall I wait for more signals from the market, right now it looks very choppy.
What do you think ? How do you see this pullback - as a bullish or bearish indicator ? Share with us in the comments :)
