Retracement is still on the table as Double Top is possible

8 thg 4, 2019

Morning guys,

The whole last week we were watching for price action around major daily resistance that actually includes major 1.618 AB-CD daily target, major 5/8 Fib resistance and daily Overbought.
Normally, such combination suggests at least some moderate pullback, say 3/8.

It creates two different setups for bears and bulls. Those who wants to buy should wait - it is not good idea to jump in at daily resistance and overbought. Thus, wait for either some pullback, at least 3/8 or upside breakout.
If BTC breaks strong daily resistance without response this shows some hidden strength and suggests upside continuation.

Bears should be focused only on tactical, short-term trade in current circumstances. To take a position we need clear bearish pattern that we do not have yet.
Last week we watched for H&S, but it was not formed as BTC has failed to form right arm of this pattern.

But, while market stands below the top - it keeps chances on retracement. Another pattern that could be formed is Double Top. Right now we see puny wash & rinse of first top - this is very typical action for D. Top pattern.
And this is the moment to make a decision on short entry against recent top, if you have bearish view on the market.