“Is it Double Top pattern?”
The BTC showed the lowest volatility for weeks and then recently rose to 21K, showing Bottom Rally.
Some say that a double top pattern is currently being formed, and that it could be reversed, resulting in a downward trend.
Indeed, is it possible to call the pattern of BTC a double top pattern? 1. Double Top should have a clear existing upward trend 🟠 (O) 2. 1st, 2nd peak🟡, 2nd is slightly higher, but it is acceptable because it is located within the +/- 4% deviation (+3.5%)
3. The neckline should be formed by retracing about 20% of the existing upward trend, but the recent trend is about 54% Pullback 🔵.
In other words, it seems difficult to expect double top pattern completion when applied to existing pattern analysis. Therefore, a full-fledged downward turnaround should not be prematurely.
Rather, the trend is more likely to be affected by the direction of the macro, especially the FOMC.This post is based on this twitter thread.