Bitcoin has been forming a downward (or sideway) pendant formation indicating weakness in this crypto. It broke to the downside after going below $2,422 and bounced up and touched the bottom of the formation which is more a confirmation to the downside. Doing this on low falling volume and a downward trending RSI shows it doesn't have a lot of support so if it confidently breaks the $2,300 floor, we're looking at a potential 10% drop to $2,035... and if it gets really bad a 25% drop to $1,790. Although I hope this doesn't happen, the recovery we're seeing right now could be a breather before we see another leg down and a true flush out in the markets.
As we saw a few days ago the overall market tends to follow Bitcoin. If your a short-term trader you may want to put a portion of your portfolio in cash and watch how things play out. If you don't want to get out of the market and ride the wild wave that is crypto currencies, to minimize risk, you may want to reallocate some holdings into more stable cryptos like Litecoin and Dash which has been performing admirably in comparison to the overall market (see my previous comparison chart above). I'm personally very fond of Litecoin. It held up very well when the rest of the market tanked. That isn't to say it won't fall with the rest of the market, it will probably just not fall as hard.
This is an interesting inflection point so keep your eyes on the markets. ;)
Happy Trading!
Note: I'm not an active trader and only make trades during major imbalances/opportunities. I have a pretty strong stomach and don't really like jumping in and out of positions unless it was absolutely necessary. I have a personal budget associated with the crypto market and tend on keeping my funds within the market but reallocate holdings to minimize risk and maximize profits without exiting the market. None of the comments made above should be considered investment advice and is only my personal opinion on how I would handle certain situations.
As we saw a few days ago the overall market tends to follow Bitcoin. If your a short-term trader you may want to put a portion of your portfolio in cash and watch how things play out. If you don't want to get out of the market and ride the wild wave that is crypto currencies, to minimize risk, you may want to reallocate some holdings into more stable cryptos like Litecoin and Dash which has been performing admirably in comparison to the overall market (see my previous comparison chart above). I'm personally very fond of Litecoin. It held up very well when the rest of the market tanked. That isn't to say it won't fall with the rest of the market, it will probably just not fall as hard.
This is an interesting inflection point so keep your eyes on the markets. ;)
Happy Trading!
Note: I'm not an active trader and only make trades during major imbalances/opportunities. I have a pretty strong stomach and don't really like jumping in and out of positions unless it was absolutely necessary. I have a personal budget associated with the crypto market and tend on keeping my funds within the market but reallocate holdings to minimize risk and maximize profits without exiting the market. None of the comments made above should be considered investment advice and is only my personal opinion on how I would handle certain situations.
Trade closed: target reached
I think the move down may be fully flushed out at the $1,790. I don't see it dropping farther unless there is some really bad news related to Bitcoin or the potential fork on Aug 1st.