Another pullback for BTC. Multiple scenarios from here...
We have a double top possibility. We have a lower high, and a stronger rejection from 40k as of now, than we had at 42k. If this plays out, a retracement to about 28k is expected.
Another possibility is that we are forming an ascending triangle, if we go up again at a higher low than before (above 30k). This is also a bullish sign. If this plays out, I expect a break-out in the middle of next week, with the higher probability being a break to the upside. If we fall below 32k for more than a few hours in the upcoming days, this is invalidated.
If we keep swinging back and forth between 34k and 40k, we're moving sideways, i.e. accumulating before the next run up. It can also become a pennant formation creating a bull flag. As long as we remain above 34k without forming a descending triangle, we'll be fine.
A descending triangle is a current potential pattern due to the lower high (40k) compared to the previous run up (42k). But if this is the case, it will take a little while to form. It should break down in about two weeks, so, we have a bit of time to see how things develop for this one.
Another scenario is that this is the start of a C wave, part of an ABC correction wave. The C wave tends to go lower than the A wave (which was the previous pullback to 30k, and the B wave being the rally we just saw). If we drop below 34k, the likelihood of this one increases. If we drop below 30k, this one is pretty much confirmed, and then I expect a drop to close to 20k.
tl;dr
Pray to god that 34K holds.
