BTCUSD Double Bottom Trade
Fundamentals for Reversal: The sharp drop was largely caused by fear and uncertainty due to Segwit2x Hard Fork cancellation and BCH shilling. However we have already corrected to prices before the hype of the hard fork even began. meanwhile, the massive sell-off of BCH 2 days ago has made it rather clear that this was a rather elaborate "Pump and Dump" operation. There is probably more fear surrounding buying into BCH vs. fear of buying into BTC .
Technicals: Textbook with bottom prices within 4% range, and two advances more than 10%, backed by rising on both advances, and strong throughout the second advance. This is a textbook stop loss and target of 2x stop loss, slightly adjusted for previous ATH .
Note: Although there is a camp of traders waiting for correction to 4800 or 5000, it is not uncommon for BTC to move on without filling the last bit of a gap. It is less common for a major correction to have such a clear . My guess is that the in the has satisfied most big trader's targets even without getting to 5000usd exactly.
Entry - Between 6480 to 6630
Stop Loss - 5600
Target - 7900
Great trade everyone!!
Only Margin traders and they likely to be caught out & BCH was a manipulated trade from A-Z
There is such a influx of $ at the moment it is generally dangerous to use ONLY technical analysis .
One has to see the bigger picture