Good day! I hope everybody is feeling AWESOME today, the Bitcoin market has followed my previous report, and we are currently testing critical support, lets take a look.
As you can see the market is in a bit of panic at the moment with sellers maintaining control for the time being. We can see the volume clearly picking up as we reach our critical support level at $7200 – $7400, like mentioned in my previous report.
The Head and Shoulders pattern has broken to the downside (for the time being) and this is a massive bearish signal for the Bitcoin market. As we can see the PPO indicator is hinting that there are some bulls appearing on the scene, however please remember a dead cat bounce is quite normal after a heavy sell-off in any market.
The cat could bounce as high as $7800, but most long entries on the market at this point should be considered high risk. For those wishing for safer trades, it would be better to wait for consolidation above the right shoulder of the pattern.
Like I mentioned previously $7200 is my longer term support zone, and should we fail to consolidate above here I would expect the bearish market conditions to continue. With that said I will be keeping an eye on the price action in this zone to show me the way forward. Those that follow my reports will remember that I mentioned $9600 as a good place to take some profits, now I am looking at good places to enter the market again. Safe trades.