This is a sunny review of CoinDesk analyst and chartered market technician Omkar Godbole.
The bitcoin
The rally is stuck, which increases the likelihood of a potential bearish technical formation: a double top.
A close examination of the sun -day chart shows that the bulls failed to maintain a rally above the Key Fibonacci Level of $ 122,056 On Monday, a performance that accurately reflected a similar denial on July 14, according to Data Source Tradingview.
This dual failure to establish a foothold above the main price point, separated by a short pullback, is a sign of the double top pattern. The neckline of this pattern, drawn from the low $ 111,982 reached in the short pullback, is the main level to watch on the downside.
A decisive move below that level will confirm the double top damage, which is the potential door opening for a seller at $ 100,000. That level is reached by reducing the gap between the twin peaks and necklines from the neckline level to what is known as the measured method of moving the calculation of targets.
Early this year, btc Double-top is close $ 100,000, eventually fell to lows under $ 75,000 in early April. The double top consists of two peaks separated by a trough and lasts about two to six weeks to form. The interval between the two peaks should be equal to or less than 5%, with a prevalence between the peaks and the trough is at least 10%, according to technical analysis theory.
These, however, are rules and not rules, meaning the backdrop is more important – the pattern should appear after a long climb to be valid, in which case the BTC case.
- Resistance: $ 120,000, $ 122,056, $ 123,181.
- Support: $ 114,295 (the 50-day SMA)$ 111,982, $ 100,000.
The bear gets an upper hand ahead of us by CPI
The dual failure of the Bitcoin Bulls to keep the acquisitions above $ 122,000 indicate a clear case of consumer fatigue, providing a significant upper hand as the leaders of the market are now released by the CPI.
This fatigue of buying pressure means that the market is particularly vulnerable to a warmer-than-expected US inflation report since Tuesday. In other words, buying Momentum is not enough to get the potential sale of pressure that is being touched by an elevated CPI and the resulting collapse of fed rates cut bets. In this situation, the market may experience a rapid decline.
Read more: The Bitcoin $ 115k Bets In Demand as Downside Fear Grips Market Leading the US CPI report
