My final chart on BTCUSD Re: Weekly Chart Sell-off MTOP
I wanted to take apart the bitcoin selloff due to the M-TOP that formed on the weekly chart in 2024. M-TOPS will always form as price-action increases and profits are locked in by traders buying at lower prices.
In case you find it hard to read the chart. The price basically dropped a further 19% when the neck was properly breached by the 1 July weekly candle of 2024. If you know a thing or 2 about M-Tops.... the distance of the top of an M-Top structure to the neck-line should always be the same distance from the neck-line to the lowest price point. In this case it is about 19%. Finally the most recent weekly candle has rebalanced the previous bearish candle of 5 August by 50% fib retracement, sure price could retrace back down to 38.2% of that bearish pink candle & would in all likelihood gain strong support there.
The 38.2% retracement of the last bearish 5 August candle is about 54,000 (BUY)
But it's price action is very volatile even more so than Gold so keep that in mind.
Scale in to buy with very low lot size within your margin affordability.
Last Advice:
Never hold onto a losing trade that is going against you. It will keep going against you.
