As mentioned in the report last week, the Bitcoin market failed to find support around $6400, after the crypto markets experienced a small sell off this week. There is a fair amount of FUD on social media, we are possibly witnessing some “social media price manipulation”, as new speculators enter the crypto market daily.
Important to note is the fact that some of the stocks had their worst performance (again), since 2016 I believe. We saw a similar situation in February this year, where crypto crashed quite hard. Will crypto crash again this time?
Taking a look at the 4hr BTC/USD chart to get an idea of resistance and support, as well as possible breakout or shorting zones.
As the stock markets are experiencing a bit of a hard time I believe some of the capital will flow from stocks into crypto later this year and into 2019, cryptocurrencies have slowly proven themselves as a more transparent (even though new) asset class than hyper inflated stocks.
To the chart, I see a nice possible divergence between the momentum and the price, however a bear flag is painted, providing warning that things can get worse still. Looking at the RSI we can see a clear attempt to test the 50 level, above which is a classic bullish signal, should momentum continue on the up.
Resistance is between $6400 – $6600, with support weighing in at around $6000 – $6200, short term, with medium term at around $5700 – $5800.
Like usual we will be prepared for a move in either direction, for those looking to short, the above mentioned levels should signal the plays, to all the moon men, look to 6400 and eventually 6600 to signal the fomo. Safe trades yall!
- This reply was modified 4 months, 1 week ago by CheesePuff.