Crypto Big Short!!
Market analysis. (by Ledger256-trader)
As we discussed in our last article, (https://steemit.com/cryptocurrency/@ledger256/bulls-and-bears-survivor-of-the-fittest) bitcoin is trading in a parallel trading channel. Price touched the upper trend line (resistance line) and dropped, that confirmed the down-trend as now three Pivot points are formed. A pivot point is defined as the point were price touches the trend line. And traders tend to use three pivot points rather than two, as this confirms that the trend is stronger and the resistance or support line is backed up by more sellers or buyers.
The figure below shows the three pivot points :
We saw in the last days big drops in bitcoin price. Two subsequent drops took place on march 7th and 8th. The market is confirming the down-trend and now is obviously a good time to short sell.
The figure below shows a double top pattern at the same level of the last high (we called it the third old top). That indicates that the market is not willing to pay a price higher than that level for bitcoin.
And as shown in the figure the price could drop to two levels, the first level is at the 6000 range which is the intersection with the lower line in the shaded channel, and price could also drop to a lower level 4000 or below touching the green line.
From the information we have we will likely see more panic sells in the following days, so be cautious if you are heavily invested. And if you are bullish on the long run (and not invested yet), hold on and buy the lows.
Stay tuned for more market analysis, and more professional topics on trading such as (volatility assessment, odds distribution and calculation, and risk management) .
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