BTCUSD - NEUTRAL (Short term possible LONG/Mid term SHORT)

8 במרץ 2018

Bitcoin had a very impulsive downtrend yesterday bringing prices below the 10k level. We've seen the support at 9500 being tested twice already and the resistance at 10k being retested once so far. The first rejection of the 1st test of the 9.5k level was enormous, but easily explained by the equally enormous red candle that preceded it. Profit taking occurred at that level in big numbers. Currently the 9.5k level is held by a 2-month long trendline. In this chart, it's drawn in pink, right below current price. In the case that that Trendline breaks we will witness a massive sell-off for Bitcoin (and the alts will follow), with next support being held at the 8k level (confluence of a TL, .618 fib and horizontal support). Keep an eye on a daily close below the pink TL.

Looking at the daily RSI and assuming a current bullish trend (currently on the second wave retrace), I expect a drop to the .618 level to be very likely.