BTC & ETH Are Both Forming Double Tops - Prepare For Dump City?

BTC & ETH Are Both Forming Double Tops - Prepare For Dump City?

By Sapphire | Sapphire Crypto | 1 Dec 2020


All Trading Positions Are Now Closed

After opening new positions in ETH at approximately $500 after the recent mini dump, I subsequently decided to close all of these positions in profit after I saw the $600 mark fail once again. The same scenario is playing out in BTC, as it has been rejected at $19.5K a number of times now. Considering we are in a bull market, it makes sense to be more biased towards the upside.

However, as I look at the 4 hourly and daily charts, a massive double top pattern is starting to form. This is probably one of the most successful bearish patterns and I don't feel confident remaining in or opening new long positions at this stage.

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Though we are likely to see fresh highs very soon, it is also a time of high volatility and I am expecting a significant dump before we see more significant upside. Sitting out of  a trade will not cost you money! Sure, there is always the case that the bulls enter and drive prices higher but I must be honest, it does appear that a significant correction is long overdue.

I would be satisfied with at least a 20% drop to ensure it safe to enter new long positions. PlanB has also noted that extreme volatility will now enter the market. So prepare for violent swings.

The thing about a bull market is that the bullish bias often conquers bearish technicals but obviously not always. There is the chance that the market defies this pattern and moves higher but I would rather remain on the side of caution. Either way, volatility has to strike at some point and after reaching such tremendous highs, volatility would require a downturn.

I am currently looking for an entry at approximately 16K and perhaps even lower. However this plays out, my next trade will be after a significant dump. I don't feel comfortable going long at these levels, especially as there has always been approximately a 35% dump upon reaching the previous all time high.

I understand the dynamics are very different this time around but until it is proven by price action, I am remaining with the data we have. Please do not consider this investment advice! Theses are merely my opinions.

 

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Current Favorite - 100% Passive BTC


Sapphire
Sapphire

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.


Sapphire Crypto
Sapphire Crypto

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.

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