Good day everybody, if you are still into crypto after the last landslide I salute you. Many new traders/speculators have never seen these prices. Just as a reality check, the bitcoin price is still up x10 from $450 a few years back. With that in mind, like I mentioned in my previous report, if we failed to get the breakout above $6500 the support zone would get tested.
Support was tested around $6000, which was solid for months, when this failed we saw a lot of investors / traders exiting the market to try save their recent losses. I am just looking at the technical s and ignoring any news / drama / fud , after the BCH fork and all recent news events.
After the prices failed to break out of the previous triangle, I will look to the descending channel to shed some light on the way forward. RSI indicator is clearly oversold on the 1 Day candle chart and the good increase in volume is confirming that open interest is very high in the Bitcoin market right now.
I will look to $4000 as the short term support zone, and should it fail to act as a support, for whatever reason, most likely it will be due to buying volume drying up, I will wait for even lower prices, perhaps a quick short on the way down.
If we get the bounce here it should consolidate between $4800 – $5000, but we will need to see good volume from the bulls or else it will be very short lived and we will test support again. I think with the RSI being the lowest it has been since 2015, we should get a decent bounce here, however let me remind you, nobody can predict the markets ;). Safe trades!
- This reply was modified 2 weeks, 6 days ago by CheesePuff.