With the breach of 0.61 gan line, we are now heading for a test of the 0.50 line, around 5400 area, but momentum and news flow suggests we will breach both 0.5 and 0.382 with a new test coming of the 2018 lows before July 2020 (probably much sooner).
Market is oversold, so bounce here isn't a surprise, but the trend remains in tack, should be selling into strength. There is a real risk that the downward channel will breach and this will suggest a serious breakdown with the risk of pushing pricing to a panic low before the end of the year high.
Traditionally December is a good month for BTC, so it wont surprise me if we stall in the 6500-7500 range during December, but I strongly recommend staying on the short side, momentum is strong. The news risk around China and increased regulatory concerns over Libra (which is no longer seen to be a help fo BTC adoption) could at any time provide further selling. It's now clear to me that China would like to see BTC replaced by a Chinese alternative.
Market is oversold, so bounce here isn't a surprise, but the trend remains in tack, should be selling into strength. There is a real risk that the downward channel will breach and this will suggest a serious breakdown with the risk of pushing pricing to a panic low before the end of the year high.
Traditionally December is a good month for BTC, so it wont surprise me if we stall in the 6500-7500 range during December, but I strongly recommend staying on the short side, momentum is strong. The news risk around China and increased regulatory concerns over Libra (which is no longer seen to be a help fo BTC adoption) could at any time provide further selling. It's now clear to me that China would like to see BTC replaced by a Chinese alternative.