Bitcoin short term trade

There is a short term trade setting up on Bitcoin. The charts are showing a strong possibility of another leg lower in Bitcoin.

Bitcoin was unable to hold the $9,250 level of support, and looks like it could be heading down to $8,000. The most recent decline came on extremely high selling volume which is typically a very bearish indicator.

Each leg lower was caused by high selling volume and followed up with low buying volume on the bounces. This could indicate that the support level is going to break down. If Bitcoin falls below $9,000 it could drop down to $8,000 very quickly. If $8,000 fails as support then it is very possible that Bitcoin retests $6,000. I would be extremely cautious buying into the market here.

If you wanted to try and profit from the drop, I would suggest shorting Bitcoin at the current price of $9,340 and having a tight stop at $9,510. Take profit just above $8,000 at $8,025. This represents a risk of $170 and a potential profit of $1,315! :)

Good luck and thanks for reading!