Bitcoin Still Seeking a Bottom [Bitcoin Price Update 2/5/2018]
Bitcoin continues its freefall and is attempting to make a lower low. The bounce from $7,600 couldn't gain traction, and BTCUSD looks toward continued selling.
The daily chart remains broken, with the Bitcoin price trading below both its 34 EMA and 89 SMA. Late last week, the 34 EMA traded below the 89 SMA, making a "bearish moving average crossover." All signs point to lower prices for an extended period of time.
The 4-hour chart also is broken, with the same technical picture intact. BTCUSD trades below both the fast and slow moving averages. There are no signs of bullishness, and Bitcoin will have to discover its next level of support. The 34 EMA is valued just below $9,000, and until the price can move higher and retake that moving average, the bearish price move should continue.
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The price may drop to 6400 before Ascend again
I agree. And we almost saw your $6,400, today. Nice call.
Sorry I'm not familiar with trading/TA, when you say extended period what should I be thinking? Hours/days/weeks?
The thing with trading is that the future is unknowable. I would say at least weeks below $10,000, if I were to guess. The last time the 34 EMA crossed under the 89 SMA, we were in a 2 months consolidation lower before breaking out. This was August 2016. However, during the bear market of 2014/2015, we stayed low for 18 months before breaking higher. Price will tell us when the bull is back. But that's not now, and not for the foreseeable future (weeks), in my opinion.