Bitcoin saw a massive sell-off Monday taking prices near the trigger a potential double top pattern in the weekly charts. Reports indicated an acceleration of unwinding of long bets for the crypto currency as the out flow from BTC ETF’s the past few weeks turned into saw a massive $210 million being liquidated in a 12H period. Reasoning for the move has been varied with people blaming the lack of policy easing in the US though we have to point out how ludicrous it is to hold an asset if its basis is merely the promise of free money from the Fed.
Resistance
- 65364 – 50D Moving Average
- 64081 – Daily Consolidation Low
- 63324 – Intraday Consolidation Floor
Support
- 58327 – Yesterday’s Low
- 56436 – Double Top Trigger
- 52970 – Daily Consolidation Resistance from February
With Monday’s sharp drop and proximity to a big picture double top trigger, our bias for BTCUSD will be to look for shorts atleast to test the pattern trigger if not break through it. Consider selling on long wicks in the hourly charts coming off 63324 region. Start seeing bearish engulfing patterns in hourly charts and we will also see this an an entry. For now we will stay-off the buy side of BTCUSD. We will need to see a consolidation around the pattern trigger first then look for signs that the drop is exhausted before going long.
