The chart is showing some of the clearest
at moment so is worth a look. Price action yesterday has not
helped the bull cause.
The chart shows Bitcoin is still in a very precarious state.
Yesterday's fencing battle with thrusts upwards and spikes
down was by turns dreary and stultifying and mixed with
moments of excitement that untlimately led nowhere slowly.
Although there is minor support at 8570 here it is not likely to
hold up for long. No evidence of human activity now, just bots
battling in no-man's land. After yesterday's small-scale roller-
coaster ride of flips and false breaks not even day traders are
showing much interest now. But the Bots have won a hollow
victory in near term. They've effectively scared the market to
a near stand-still. Once bitten, twice shy.
Another test of 8286 line looks likely here soon. Although it
should try to bounce from here the overall pattern is
suggesting that this level will break eventually and trigger a
short to 7619 initially. In turn a break below here is likely to
lead to a retest of the lows at 5950.
On the upside any rally from here is likely to get rejected by
the dynamic now forming from the last rally high. Cannot
think about a long from here unless 9300 is retaken and held
by the bulls. That would turn Bitcoin back to positive again
and can be followed if we see it happen. It looks unlikely now
but we still need to be prepared for both eventualities just in
But until we get a clear signal as above the best course of
action right now is to keep powder dry and try not to get
sucked into false breaks in the meantime.
Even if we don't trade this complex (why would you) it's still been helpful in dtermining overall trend and turning points - so let's do this one, quickly
In a perfect world it was meant to hit 7640 line and bounce. It got as low as 7700 exactly. Close but no cigar.
The break above the upper parallel of the impulse wave was the signal to close out and reverse. It was pretty good, but not perfect.
The bounce back to the upper resistance has been not bad but is again 60 points shy of the line. Now it has to consolidate the burst higher and is a near term sell/take long profits for day traders with some reversing short again with stops above 8365.