Bitcoin has been very volatile over the last two weeks, I think this is mostly due to a lot of contradicting fundamentals around Bitcoin and its future, the CME has apparently said that they will cap trader of Bitcoin futures at 20% a day. For this reason I would say Crypto is going to do a bit of a moonshot, as the biggest gains are still found with small market altcoins.
With all that said I just trade technical and will ignore all the news etc. 😛
Taking a look at the chart we can see what looks like a textbook double top forming, double tops do fail and it has happened a lot the last few months. However the RSI is in agreement (short term) so I expect that the bottom channel (purple line) should get tested again.
Please not I am a old bear and always looking to the other side of the market. Medium to longer term BTC is still extremely bullish, longer term bottom trend is indicated by the green line.
What to do now? I am waiting to see what the price action does between 17k and 15k, with 14k – 14k being short term support. (In my opinion)
Should prices consolidate below 14k I would consider a short down to the 12500 – 11000 levels. (High Risk – Long/Medium Term Bullish)
Feel free to ask me about my market analysis in our Slack. Safe trades!