Welcome guys and gals, I hope you had a wonderfully volatile weekend with us in the Crypto-Space. Bitcoin bounced quite strongly after dropping below $6000, but only when the support level mentioned in my previous report failed. Personally I think many main stream investors had their confidence shaken with the exchange hacks, EOS trouble and not to forget the Tether printing press.
While some exited the markets, surely other market participants jumped at the chance to get some discounted Crypto coins this weekend. If this weekend’s action made your stomach turn, maybe you should consider safer investments such as metals, ie silver or gold. For those of you that are having fun hodling and experiencing 1st class volatility, you are a part of history, what goes down ….
Lets take a look at the 1 Candle Bitcoin vs US Dollar charts.
I know there is a lot of fear out there in the market at this point, rightfully so, the market is still in a clear down trend. Any buys here, like I mentioned in previous reports, should be considered HIGH RISK. For the higher risk players, we are looking towards the 6k level acting as support for a third, and possibly a fourth time, as a good sign.
We can notice that the volume has decreased significantly since December last year, and the MACD is confirming that the price action and momentum are coiling tighter together, getting squeezed as the market nears its decision. Notice that despite the bloody weekend the massive triangle is still in tact. This is another positive signal for the higher risk trader, looking to take the risks to get maximum rewards.
The good news about this triangle is that we should see some action before or after the 4th of July. Even though no candlestick formation has a 100% success rate, in the past traders have found that descending triangles have quite a high chance of a bullish breakout.
On the flip side, $6000 is now a critical support zone, should the market consolidate below here, the triangle will be invalidated and we could see Willy Woo’s price prediction of low $5k come true.
Resistance is around $6800 – $7000 for me personally at this point, and I am expecting some bulls to show up to the party should we consolidate above those levels this week. Safe trades.
Trading Tip: Be sure to set up your OWN RULES for your OWN TRADES, BEFORE YOU ENTER THEM. This will help you to make the right decisions quite a lot faster, such as, should I take a loss?, should I take profit?.
Fortune favors the prepared.