Good day Hiveians!
Join me in analyzing the crypto markets!
This is the regular update on BTC and I we might be heading for a double top
Some days ago Bitcoin pushed upwards explosively by 10%. There didn't seem to be a particular news event besides from a statement by the US government that they were not going to ban cryptos. Was that the catalyst? While it is hard to say, I am more concerned with the overlying movement of bitcoin. Last week we had this outlook in which I argued for two possible scenarios. Now it is clear that the blue one was more accurate, although the upwards push was more pronounced. However, I don't think the general outlook of a continuing downward trend to 20-30k has changed.
Looking back to 2018 and 2020 we see two similar instances when prices first bounced back before declining further. The similarities to 2018 are very high. They are marked in this next chart. Notice that the upward movement was rejected either by the trend line coming from previous peaks (seen in 2018) or by the trend line coming from the start of the impulse wave (seen in 2020).
For 2021 we have seen a rejection similarly to 2020, but I think another rejection similarly to 2018 could be coming up as well.This would be a rejection coming from the previous peaks.
Notice that this would be similar to the double peak we saw in 2018.
On the micro scale I think we could see three smaller waves trying to break this trend line, only to be rejected. Notice how this whole sub wave starting in late July can be broken up into waves of three. The following is one possible way of looking at this wave, but it would neatly fit into this 3 wave pattern. Each peak can again be divided into 3s. While I am not sure why the market is moving in this way, it is clear that it is doing so.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
⛅🌦🌧🌦🌧🌨☁🌩🌦⛅🌧☁🌤🌥🌪🌧🌨🌩⛅🌦☁🌤🌥🌤⛅🌤⛅🌦⛅
Check out the Love The Clouds Community if you share the love for clouds!
⛅🌦🌧🌦🌧🌨☁🌩🌦⛅🌧☁🌤🌥🌪🌧🌨🌩⛅🌦☁🌤🌥🌤⛅🌤⛅🌦⛅