Bitcoin: BTCUSD Update
Over the last 12 hours or so Bitcoin has formed a continuation
channel , dropping out of the lower parallel as London opened
and falling away, making a bounce from support line centred
around 7150 and then rallying up to the next listed old
support/new resistance line at 7250-7274 where it fell away
again under the heavy weight of all that structure recently
built directly above it. This is perfect price action for
plugged-in day-traders working with the smallest spreads -
which brings us back to Goldmans and Co. It would be so
educational to watch their Bitcoin desk for a day. It should be
a prize in a trading competition.
Right now, Bitcoin is retesting the lows at 7077 again, and
flipping between here and the next old support/new
resistance line on chart at 7150. we know that 7077 was the
original start point of yesterday's big rally - so Goldmans etc
will try to push it down below here to take out stops
underneath and then if it doesn't start to rally from 7077,
where they want it to, as per shape of this decline so far, and
price gets stuck under 7077, they'll start to unload again and
look to pick it up again at 6960-6930 key support.
So it's a speccy buy at 7077 but with a tight stop at 7050
because if it breaks here it will come back to major support
at 6960-6930 where it's another buy with stops under 6900.
So there are two points of interest for buyers today: 7077
with stop under 7050 or 6960-60930 with stop under 6900 if
the first shot fails. We were looking for a potential double
bottom to form...it should do it here or from the next line of
support at 6940 if it's going to do it at all.
At all costs, 6900 must hold up to all bear raids today - any
failure to do so would tip Bitcoin into serious bear territory,
signalling further intense selling pressure back to 6312 at
least, and potentially to 6165. A good short if we see it at any
point with stops above 6960.
Be Lucky
Over the last 12 hours or so Bitcoin has formed a continuation
channel , dropping out of the lower parallel as London opened
and falling away, making a bounce from support line centred
around 7150 and then rallying up to the next listed old
support/new resistance line at 7250-7274 where it fell away
again under the heavy weight of all that structure recently
built directly above it. This is perfect price action for
plugged-in day-traders working with the smallest spreads -
which brings us back to Goldmans and Co. It would be so
educational to watch their Bitcoin desk for a day. It should be
a prize in a trading competition.
Right now, Bitcoin is retesting the lows at 7077 again, and
flipping between here and the next old support/new
resistance line on chart at 7150. we know that 7077 was the
original start point of yesterday's big rally - so Goldmans etc
will try to push it down below here to take out stops
underneath and then if it doesn't start to rally from 7077,
where they want it to, as per shape of this decline so far, and
price gets stuck under 7077, they'll start to unload again and
look to pick it up again at 6960-6930 key support.
So it's a speccy buy at 7077 but with a tight stop at 7050
because if it breaks here it will come back to major support
at 6960-6930 where it's another buy with stops under 6900.
So there are two points of interest for buyers today: 7077
with stop under 7050 or 6960-60930 with stop under 6900 if
the first shot fails. We were looking for a potential double
bottom to form...it should do it here or from the next line of
support at 6940 if it's going to do it at all.
At all costs, 6900 must hold up to all bear raids today - any
failure to do so would tip Bitcoin into serious bear territory,
signalling further intense selling pressure back to 6312 at
least, and potentially to 6165. A good short if we see it at any
point with stops above 6960.
Be Lucky