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Crypto Update: Bitcoin Hits Biggest Double Top In Crypto History

By Jason SenCryptocurrencyOct 19, 2021 01:38AM ET
www.investing.com/analysis/crypto-update-bitcoin-hits-biggest-double-top-in-crypto-history-200605473
Crypto Update: Bitcoin Hits Biggest Double Top In Crypto History
By Jason Sen   |  Oct 19, 2021 01:38AM ET
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Bitcoin held 900 ticks above important support at 58000/57000 and we are hovering just below the all time high at 64600/900 in severely overbought conditions. Obviously this is key to direction. Failure to beat this level leaves an important double top sell signal in severely overbought conditions. In theory this would trigger a epic crash to 26000, 16000 and even lower in the months ahead. At this stage it seems impossible to imagine.

Ripple bottomed exactly at the most important support of the week at 10250/10200. Holding above 10700 keeps bulls in control for today.

Ethereum holding important trend line resistance at 3870/3900 keeps the outlook negative. However this has held and triggered significant losses to what has now become  the important 3700/3600 level.

Today’s Analysis

Bitcoin failure to beat the all time high at 64600/900 leaves the biggest double top in crypto history. It does not guarantee a crash, but could certainly trigger significant losses in the weeks ahead. Important support at 58000/57000 remains crucial. If this holds as it did on Sunday, bulls retain control and we could have another go at the all time high around 64800/900.

If prices start breaking below 56500, I would be very concerned about further losses to 54000/53500. Longs need stops below 53000. On a break below here I would give up all hope of a bounce for Bitcoin. I would be out of all longs and would consider a medium term short position.

Ripple longs at 10250/10200 are working. Holding first support at 10700/750 today allows a recovery to 11000, perhaps as far as 11400. Expect strong resistance at 12020/12100. A break higher can target 11300/11400.

Most important support of the week is at 10250/10200. Holding here keeps bulls in control. A break below here is an important sell signal initially targeting the less important 9700/9600. On a break below I would expect significant losses. Initially we should target 8600. This may hold on the first test and we could even see a decent bounce. However, I would be a seller at resistance on this bounce, expecting the support to break vent for another significant sell signal.

Ethereum rejects important trend line resistance at 3870/3900 to bottom exactly at first support at 3690/50 on Sunday night. Obviously we watch these 2 levels again today. Be ready to sell a break below 3600 targeting 3480/3450, perhaps as far as 3350/3300. Further losses are certainly possible as far as support at 3050/3000. Bulls need to clear the September high at 4000/4030 for the next buy signal and it could be a straight run to the all time high at 4355/85.

Disclaimer: No representation or warranty is made as to the accuracy or completeness of this information and opinions expressed may be subject to change without notice. Estimates and projections set forth herein are based on assumptions that may not be correct or otherwise realized. All reports and information are designed for information purposes only and neither the information contained herein nor any opinion expressed is deemed to constitute an offer or invitation to make an offer, to buy or sell any security or any option, futures or other related derivatives.

Crypto Update: Bitcoin Hits Biggest Double Top In Crypto History
 

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Crypto Update: Bitcoin Hits Biggest Double Top In Crypto History

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Comments (2)
Zsolt Kovacs
Zsolt Kovacs Oct 20, 2021 12:43AM ET
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IMO you are right. Call me crazy, but I've just reduced a bit my positions. The whole market is freakingly bullish, almost everyone believes at the end of the year 100k at least. The market goes most of the time in the direction which cause for the mass the bigger pain, so this time it would mean downwards, reaaalllllyyy deeeep. If it breaks out I won't be said, still have a big enough position :)
Prakash Subedi
Prakash Subedi Oct 20, 2021 12:43AM ET
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100k is too small.. 300k is the top.. double top is already blown away today... New ATH baby. Just couple of days of consolidation around the top and ppl already started callimg it at "biggest double top".. what a joke
Prakash Subedi
Prakash Subedi Oct 19, 2021 10:07AM ET
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Double top ? Isnt it too soon to call. I instead see a massive ******off top (2x-5x from current levels) coming up in next few months…
 
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