Without a doubt the recent moves have been nasty and caught many people off guard. For a new/future/potential currency the liquidity available remains an issue, so such moves will be something that traders have to cope with. If you can't stand the heat, stay away from the fire (as we do in the case of crypto's).
From a technical viewpoint the false breakout is potential quite bearish. Former buyers into the rally probably still need to cover is pain gets too much. We expect a retest of the key lows around 6160 up to 5845 over the coming days. Needless to say a break below this area is exceedingly negative for the following months. Zooming in on the 180-min chart one can see the bulls are not completely gone yet as long as 6580 holds as intraday support. However, the larger outlook gives the bulls very significant headwinds and thus we remain highly critical of any bullish forecast. Continue to avoid. If left with no choice, we would prefer to enter-short rather than buy. And this is for the relative outperformer among major crypto's...
Trend: neutral
Outlook: 0,0 credibility, re-test of support
Strategy: avoid or trading short-entry
Support: 6160 / 5845-
Resistance: 7190 / 7550 / 8415 / 10320*
Outlook cancelled/neutralized: n/a
Daily chart Bitcoin / US Dollar (BTC/USD via Bitfinex)
From a technical viewpoint the false breakout is potential quite bearish. Former buyers into the rally probably still need to cover is pain gets too much. We expect a retest of the key lows around 6160 up to 5845 over the coming days. Needless to say a break below this area is exceedingly negative for the following months. Zooming in on the 180-min chart one can see the bulls are not completely gone yet as long as 6580 holds as intraday support. However, the larger outlook gives the bulls very significant headwinds and thus we remain highly critical of any bullish forecast. Continue to avoid. If left with no choice, we would prefer to enter-short rather than buy. And this is for the relative outperformer among major crypto's...
Trend: neutral
Outlook: 0,0 credibility, re-test of support
Strategy: avoid or trading short-entry
Support: 6160 / 5845-
Resistance: 7190 / 7550 / 8415 / 10320*
Outlook cancelled/neutralized: n/a
Daily chart Bitcoin / US Dollar (BTC/USD via Bitfinex)