Happy Monday crypto friends! I hope you all had a great weekend. I was out of town at Disneyland and saw the new Star Wars area which was amazing. Post on it later...
Bears are still on the move as prices continue to push down. This morning, Bitcoin made a new lower low on the shorter trend and we're seeing bear volume increasing over the last two days.
We just closed out the week with the second highest bear volume we've ever seen for a weekly bar.
I really want to point out a few things on this weekly chart...
For starters, the week closed with a hugely bearish reversal doji with a HUGE upper wick. This is a very bad signal for the bulls. There's hardly any lower wick, and we have a huge amount of bear rejection which led to the large wick size.
Weekly RSI is pulling back. We had a price higher high with RSI lower high. The diverging lines meant pullback, so I expect this to continue a bit.
First major support is $9,000. From there, we're looking at $8,230 and then $7,600. If those all fail (possible), we're looking back at the "$6,000" level. I put it in quotes since it didn't provide resistance on the way up but might still be supportive on the way down should it get there.
More updates to follow. Hope you all had a great weekend!
