- BTC has formed a double tops on the 1hr chart, which could signify a short-term retracement.
BTCUSD formed a double tops pattern on the 30min chart yesterday. Usually, this pattern represents an upside momentum exhaustion. This could be an early sign of short-term retracement. However, there are a number of key levels that are worth watching before anyone considers taking any BTC short positions.
At the time of writing this, BTC was around the $45149 level, which is slightly below the $44680 demand area. A demand area is a point in the market where an asset’s price previously revealed significant buying pressure. In other words, the last time price came to this level, a significant number of investors and traders took buy positions that pushed price higher.
For traders to consider taking short position on BTC, they need to wait for price to break below the $44680 level. However, if this level holds and price gains bullish momentum, then it might be interpreted as an uptrend continuation signal. The level is therefore the immediate level of importance. The chart below shows the above mentioned levels on the 30 minutes chart;
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