It is no secret that btc is approaching the end of descending triangle which has been forming ever since we topped out many months ago.....I think its safe to say that most of us are aware that some sort of major event will happen once we break out in either direction......so really, the only thing that nobody knows (including me) is which way it will break when it occurs.
I am tying to show why I think the break will be to the downside.
There are a handful of timeframes which one can use to come to this conclusion, but take a look at the two hour chart. I believe it offers us an accurate representation of the overall strength of bitcoin at this time.
Bitcoin has put in a triple top, with each of these moves showing that it is weakening in strength.
Sept 21-22 the 2 hour RSI managed to top out at an RSI of 80ish
Sept 27-28 the second top was put in with an RSI that only managed to get up to approximately 73 without taking out the previous high.
Yesterday-the third top was put in with an RSI that only managed to poke its nose into overbought territory for a very short amount of time with a high of 61ish.
So...obviously nobody can say for sure, but I believe the break will be to the down side since to me it appears we have bitcoin completing a triple top which appears to be weakening in each of the three moves upwards.
To top it off, during this triple top rally (not really a true rally...but for lack of a better word describing a temporary upward trend), bitcoin on a daily basis was never able to get the daily RSI above the zero point. I think most technical traders can appreciate this danger without me explaining it.
Maybe its minutes from now, or maybe hours....but I believe that we crash from here. Best of luck to all traders.
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