Quick update on the Bitcoin markets, after my previous mentioned support level at 8800 failed, the price action responded by falling back into the down trend channel.
We can see the the price has now been rejected by the 0.5 fib, this is bearish and as I mentioned previously, this will mean further correction is necessary in the market before prices move higher.
Even though prices are falling, the volume has been building up the last 10 days and this a very healthy sign for the market.
My support zone is in between $6600 and $7500, and not a bad place for longer term buy orders to be placed. Perhaps a few below 6k for luck.
This could all change quickly in my opinion, should prices consolidate above 8100 today, we might see prices push higher.
Worst case scenario would be a fall through the $6600 support level, this will send prices to 6k and if that fails we will retest the bottom of the downtrend channel.
Being a technical trader it helps to be mindful of the fundamentals, when I take into consideration there is some bearish news, it is greatly overpowered by all the bullish developments in the crypto space.
The buyers are out there (some battered and burnt), open interested is building, lets be patient and wait for the price action to lead the way.