BTC finally surpasses 1day50ma…but finds a potential double top

Finally breaking above the 1 day 50ma with authority was a great bullish sign up until the price action reached the double top point. As soon as price action retreated right at the double top point exactly it gave a great opportunity for the bears to shove the price action back downward. It may be a good risk reward zone her to exit my position and set a stop buy up just above the double top zone. If I were to wait for a little while for a bounce I would definitely wanna exit if I see the price action fail to close above the 1 day 50 ma for 2 consecutive day candles. Just as I wouldn't wanna get too excited about being above the 1 day 50ma until we have closed at least 2 1 day candles above it as well. This idea will remain neutral but I will be keeping a very close eye out for any sort of confluence that validates the potential double top that we have shown here on this chart on the frosted pink horizontal trend line. If we can form a higher high here above the frosted pink trendline I will definitely be siding more with the bulls. Thanks for reading! *not financial advice*

Commentaire:

last thing to mention is the projected price break targets for both the yellow falling wedge and the red falling wedge have now been met.

Commentaire:

if for some reason we did trigger a double top $3340 would be the initial projected drop...of course it could definitely continue to plummet after that which if so I think it would be safe to say at that point that would be capitulation. however that target area is also right around the weekly 200ma strong support so if it did trigger the double top its also very likely it would be aggressively bounced back up before it had a chance to close below the weekly 200ma strong support.