Bitcoin Breaks Below Critical Support
We've been watching Bitcoin bounce around in the descending triangle for months knowing a big move was coming. We didn't know what direction that move would be in, but now it's clear.
This move is apparently coming from the uncertainties of the Bitcoin Cash hard fork. This market had been going sideways for so long, I new there had to be some piece of news that would come in and bring some fear to the market to push prices lower since we have obviously lost upward momentum for some time now.
Bitcoin is breaking support below $6k, a price point that has been held since February 2018. Price would need to bounce back above $6k fairly quickly in order to negate it's drop below. Given how weak this market is technically, I'm going to make the assumption that we won't rebound from here. I'll also say that I believe we are heading for lower lines of support before we see a rebound. $5k is my next target for price.
We have broken support at $6k and are heading lower. I must be clear that I am not buying here. On the weekly chart, we are not yet at an oversold condition. I want to see an RSI of 30 before I step in and buy.
Thanks for stopping by! Until next time.
Disclaimer:
The information in this article is meant only as educational content, expressed opinion, and not investment advice. Investing your money in openly traded companies is risky and can result in the loss of principle. Investing in commodities is more risky than trading company stock as commodities are open to more risk since they are traded on the global market. This means that the ETFs of the underlying commodities (GLD and SLV) are at risk to having big movements in price while the US markets are closed. Cryptocurrency carry a great amount of risk as well. Only invest what you can afford to lose, and always do your own research.
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