Bitcoin Forming Alarming Double Top, But Some Analysts Bullish — Price Analysis
Crypto-Twitter’s “Benjamin Blunts”, a popular chart analyst with a good track record, has predicted that Bitcoin (BTC) is due to break through its $10,000 limit soon.
btc smashed past the 0.618 overnight from that move down and bears are getting euphoric again because theres a bit of a wick to the upside
ideally we go sideways a bit here and garner steamf or the next run up
while we trade above that 1200,200DMA cluster at 8k i remain bullish pic.twitter.com/vCv05fYkYz
— 🍄🌲Benjamin Blunts🌲🍄 (@SmartContracter) May 14, 2020
We can see that Ben’s bullish case is a consolidation around $9,300, after which he expects a move up about $12,000.
On the short term charts, we can see the .618 level Ben was presumably referring to. Indeed, a possible move up with held right at the .618 zone within this LTF market structure, being a juicy short target for bears.
On the other hand, there isn’t much volume on the downside, with most of it flushed out late yesterday evening. What is most important is for price to hold above $9,300, which marks significant support.
Moving to the daily, we see a bearish scenario setting up. A double top near $10k is forming, along with a steep drop in support on the RSI. We have seen a back-and-forth on the nearest support zone, around $9k.
We need to see this hold, although there is certainly some cause for concern from that double top.
Finally, on the 3-day chart, we see that the .618 here has continued to be supported through a tumultuous week. It was very notable for price to get this high and clear this zone, and is even still trending above the .786.
Just because of this, we can retain a healthy bullish bias that price may soon break free of $10,500 (validating Benjamin’s bias).
Considering how important the resistance is here, we were always likely to see a lot of volatility up here.
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