Double Top Confirmed?
Bitcoin has broken its previous all - time - high level and made it it more than $69K though it was not able to stay above that level. With this update, the crypto ecosystem proved the power of Bitcoin Spot ETFs on a narrow market like ours. As a result of Bitcoin ETFs, the market turned into green for around 3 months.
The retail investors' impact on the price of Bitcoin became almost nothing as the institutional giants make massive purchases every time. Even though the market had some negative experience due to GBTC sell - off by the future ETF holders, the positive net inflow provided us with a brand new facet of a tech - based market.
Just a couple of minutes ago, we saw a huge sell - off on the market as a rejection from the level of $69K by the market maker. The act of the whale was as if a reminder that the whales still have a power to drive the market though the ETFs have been in charge for a long while.
Rejection from Previous All Time High
The rejection was interpreted as a " double - top " formation in technical analysis.
Basically, the seller can no longer find someone to sell and the market assumes that a reversal action is about to occur due to the loss of strength on the side of buyers.
Actually, it is not enough to confirm whether the double top formation will work or not. It might turn into a cup and handle with some consolidation period and a stronger market in a couple of months.
To understand the possible " local tops" in the current bull leg, we need to see what the indicators show us.
Among one of the popular indicators on Glass Node, I care about the indications of Pi Cycle Top as we mentioned several times on InLEO.
It shows that the price of $67.3K is a strong resistance, maybe a top before a correction, in this move.
However, we need to keep in mind that the launch of Spot Bitcoin ETFs is an exceptional case for the market. Thus, addressing a local top accurately is a hard issue for traders. The overbought signals from RSI, the growing fear in the market, and the double top formation are the reasons why people started to speculate about the possibility of a healthy correction.
What do you think about the double top formation that investors talk about?
Share your expectations below 👇
Hive On ✌️
Posted Using InLeo Alpha
I'm expecting some unexpected events around the Bitcoin and crypto markets at large. There's much to learn for the days ahead.