A Potential Double Top?
Bitcoin is hovering around $105k, but the bulls seem to be struggling to bring enough demand to trigger that next major lift-off, whilst bears are now talking about a potential 2021 style double top.
G’day Folks,
It has been a while since we performed a deep and comprehensive health check on the Bitcoin market, so today is the day.
The demand coming from the bulls has been sufficient to push the price up to a new ATH vs the US dollar, but not enough to achieve a complete and convincing lift-off.
Meanwhile, price is trading just slightly off the highs, but seems to be struggling to recover quickly. Sell-side pressure remains a key factor to watch, and the inflows from the ETFs, and even Treasury companies are softer than we’d hope.
The bears have been chirping about a potential 2021 style double top, which is actually a valid concern, and one we should take seriously.
At the end of the day, the higher the price goes, the more sell-side is engaged. In a raging bull market, demand is sufficient to soak it up, but the bulls really do have to show up for the market to head higher.
Today’s post will be a deep dive into all sectors of the Bitcoin market, to try and gauge the potential for a repeat of the 2021 double top formation.
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