I’m sort of neutral on technical analysis but if you’re a student of the trading game you have to be aware. “Double tops” are sometimes critically important for medium- and long-term trends. The set up here is a case study in the making.
We’ve sold off all year in BTC and earlier this week we popped from around $3650 to $4300 & failed briefly. We’re back in the same area & the market has stalled. In pure charting textbook analytics a 2nd failure here would open us up to the possibility of new lows. DYOR – not investment advice.
Conversely, a break above this critical resistance area could indicate a temporary low is in. I have no opinion on what’s going to happen but I’m listening to the market for direction. Sentiment is pretty lousy & this is sometimes a sign the market may turn. Cryptos are such an unusual beast applying principles from stocks, bonds and commodities may be sheer folly. But my philosophy is you have to use every piece of public information – and there is a lot – at your disposal to have any clue how to proceed. I have never seen any market less predictable than this one and I have never seen so many people -including me – being so dead wrong all the time. So when I have conviction or others profess they do, it makes me wonder if we don’t have it backwards.