With Bitcoin (BTC) reaching down to our target area near 6k. Now is an excellent time to review major themes.
We believe the Chinese blockchain "crackdown" entails the Chinese government is interfering directly in the crypto market. They may be forcing exchanges are forcing liquidation of accounts belonging to China nationals. The Chinese may also be forcing exchanges to liquidate inventory.
Next, because forced liquidation is present, Bitcoin (BTC) is continuously forming these wild candlestick patterns with really long wicks. In other words, Bitcoin goes down, and then it massively reverses. At first glance, this looks bullish, but it may not be. The key to any bullish looking candle pattern with a long wick is a follow-through rally.
So, with Bitcoin (BTC) on Bitmex (XBT) hitting a big Fib speed line near 6400, it is now incumbent on Bitcoin (BTC) to move through resistance near 7460 to say the forced liquidation is over.
Bottom Line: The best thing to here is to stay out of the way if you can. Use rallies to protect yourself in case there is a have below 6k. Bigger picture, we believe this current down move is blow out of longs before a rally in 2020. In the meantime, do not underestimate Chinese determination to disrupt the crypto market. They are looking to stop the capital flight of the mainland and out of Hong Kong.
We believe the Chinese blockchain "crackdown" entails the Chinese government is interfering directly in the crypto market. They may be forcing exchanges are forcing liquidation of accounts belonging to China nationals. The Chinese may also be forcing exchanges to liquidate inventory.
Next, because forced liquidation is present, Bitcoin (BTC) is continuously forming these wild candlestick patterns with really long wicks. In other words, Bitcoin goes down, and then it massively reverses. At first glance, this looks bullish, but it may not be. The key to any bullish looking candle pattern with a long wick is a follow-through rally.
So, with Bitcoin (BTC) on Bitmex (XBT) hitting a big Fib speed line near 6400, it is now incumbent on Bitcoin (BTC) to move through resistance near 7460 to say the forced liquidation is over.
Bottom Line: The best thing to here is to stay out of the way if you can. Use rallies to protect yourself in case there is a have below 6k. Bigger picture, we believe this current down move is blow out of longs before a rally in 2020. In the meantime, do not underestimate Chinese determination to disrupt the crypto market. They are looking to stop the capital flight of the mainland and out of Hong Kong.
