Double shoulder formation on bitcoin. Is it just beginning of downtrend?
After yesterday bull run of bitcoin we can see that the bitcoin chart have a double shoulder formation which means long term change of the trend. Considering that there was a lot of pump on bitcoin caused by BIP91 activation a lot of people who bought at 1800-2200 might want to take their profits before the weekend. This may cause a serious pullback and panic of investors. Any bad news about segwit or hardfork may make it even stronger. It is just possible scenario everyone knows that technical analysis is only to help predict future but the market is unexpectable. I'm posting this only because i noticed double shoulder form yesterday and expected the price will go up but not 25% up like it happened . Check this picture:
That was small formation which caused short term shot. In my opinion it is wise to stay calm right now and wait until the weekend ends. If during this weekend we will have another correction then downtrend could be real.
Nice analysis. Lots of indicators like that showing on the charts and the market just ignoring them. Really hard to read the charts at the moment but one thing was clear a big spike up probably ment a big spike down, and like you said it is now very real. Upvoted.
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