If Bitcoin confirms double top it could drop below $12,000.00.
If that happens it automatically triggers head & shoulder pattern which would take us to $8,000.00.
Major drop is inevitable, crypto market needs to flush out all speculators. If there are more believers than speculators then crypto will hold $8,000.00 level otherwise prepare for crash. Let’s hope there is more believers in crypto future than speculators!
Speculator vs. Typical Investor
Speculators play a key role in driving trends, both up and down. As this group considers available market information -- such as earnings reports, news or price patterns -- they buy or sell, pushing the price of a stock. If many speculators agree, a trend in price is created. If speculators don't agree on direction, the market is choppy and is said to move "sideways." The typical investor is not actively managing positions in an attempt to profit as a speculator might. Rather, typical investors usually invest in a company or fund for a long period of time and are less concerned with short-term ups and downs in the market. Investors attempt to profit from the long-term rise of a diversified portfolio, where active speculators may trade only one stock or just a few -- though some may actively trade in many -- usually within a shorter time horizon.
Effects of Speculators
There is a conventional view that speculators are the cause of market crashes, such as the great crash of 1929. No one group can be blamed in isolation, though. Markets are composed of many participants, all with different time frames and agendas. A massive stock market rise can't occur without the participation of nearly all market participants buying stocks, just as the ensuing crash can't occur without nearly all participants opting to sell. As prices climb, conventional investors often become speculators, investing more heavily, often on margin and deviating from their usually more prudent investment strategy -- the so-called "herd mentality." This creates excessive speculation and forces prices too high in too short a period. With capital exhausted, no one is left to continue buying and thus speculators, followed by investors, begin to sell. The same occurs as the market drops. Speculators and investors sell until no sellers are left, and then the market begins to rise again.