Bitcoin Update 07/09/2018

Hello everyone!

Wow what a bear move!

A quick reminder from the market that this bearish period is far from over.

Before reaching the trendline at $7500 price got rejected at this green resistance area.
My assumption was a retracement back to the $7000 levels, thus having the chart form a higher low,
but BTC broke through all support levels and is now being traded in the $6400 ranges.

That’s a retracement of some whopping 15% in just about 16 hours.

If this dump occured because Goldman Sachs cancelled their plans to open a trading desk for cryptocurrencies or not we can’t say, however if you are trading indicator divergences you might have caught this short trade nonetheless:



Who needs insider information when you have TA!

Right now this seems to be a dead cat bounce and those usually tend to rise to the 0.236 and 0.382 Fibonacci levels.
However Btc is not showing any strong signs of a bounce attempt as of now.



So to some traders a long entry may be tempting right now,
considering Btc has retraced well over 60% of it’s entire previous rally and the RSI is vastly oversold on the hourly timeframes,
but long entries must be placed with extreme caution.

Especially with regards to the bear flag Btc is forming right now:



In case of a further decline downwards the next price target is this $6150-$6250 green box
where we have strong support and are very close to our beloved $6000 range.



Since this downward movement happened so quick and violently at the same time
I doubt that the bears have enough force to break the 6k bottom right away.

But please don’t take this as a fact, anything’s possible!

I recommend to simply sit on the sidelines and watch things unfold.

With a little bit of patience we might have a much clearer picture of where Btc’s price is heading to very soon.


Thanks for reading and stay safe out there!