CRYPTO BLOODBATH! What a washout today, and it may not be over. Lets take a look at the charts.
BTCUSD Daily on Bitstamp
- trading at 9740usd at press time
- We have had a hard flush over the last 4 days with a fake breakout after testing the 10k support.
- Many (inc me) thought that the hold on the 10k support was it. We are unlikely to revisit 4 digit bitcoin prices ever again. I was WRONG
- We have had a local low of 9467 on Bitstamp, this is below the previous local low of 9614 by about 150usd.
- This may have potentially opened the trap door to a break further down.
- We are through our 21dema and 50ema indicators. 9750-9600 is a level to watch.
BTCUSD Hourly on Bitstamp
- In the hourly you can clearly see how the floor has dropped out from the bids in the lat 2.5 hours
- This is coinciding with the FB and social media senate hearings that are focusing on Libra. Correlation is not Causation though
- In several previous posts I call for a retracement back well into the 4 figure prices link
and from here were do we go?
- I think we have a few resistance levels still below us to test.
- 9700-9600 is the first one
- 8850-8750 is the next
- And then there is 7500
- 21 weekly moving average, a major support indicator in bitcoin bull runs is at 7850 at the moment.
- I will watch closely because if we break 9k, stop losses may be called for.
- Whenever sentiment turns bearish, our collective imagineations always see the dark side of all analysis
- Also we have only very recently been treated to a rally in bitcoin after a brutal winter. We have not yet put our coats and boots away, and so it is not hard for us to imagine a last flash of cold conditions in cryptoland.
Hope for the best, plan for the worst!
As always guys, leave comments, have fun and trade safe.
Disclaimer: This post is not financial advice. Before investing any funds do your own research and make your own decisions. Cryptocurrencies are highly speculative.
And finally: Do not invest money you are not comfortable losing.
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