We’ve seen this set up before — BTC hit near the $20,000 level, pulled back — shot up near $20000 again and that was THE TOP and within a year price went to $6000 and ultimately near $3000.
That’s the power of a bearish double top pattern, and that’s what we have set up for BTC and other key altcoins (BUT NOT ALL) right now.
NOTE FOR US STOCK TRADERS — check out the chart for the S and P 500 — its dealing with a double top pattern around $2950 too — just thought we’d mention it…..
We’ll add that the pattern is not as clearly developed as it was when BTC reached $20,000, but we know $8400 has been a key price level in the past and BTC can’t blast above it — so we have a big red flag we cannot ignore. See chart below along with ETH chart that show details.
On the bullish side, check out the BNB chart shown below — nothing bearish going on there — same for TOP 25 ALTCOIN DASH (not shown), and a few other altcoins — in the past that was a very bullish sign for the crypto market — but then there was the double top pattern at BTC $20,000 when everyone was sure price was going to $25000 and beyond (we were out at $18,000 remember? :-)) ….
BOTTOM LINE: Bulls still have the edge but that could change in a big hurry — best to be careful here and protect those profits!