11/10/2018/07:50CET
#Bitcoin has had a sharp selloff - whats going on? Is this the next phase of the slide, or what?
Bitcoin had a bad hickup earlier today at about 1am GMT
We are trading at press time at 6330 usd after reaching the mid 6600 usd mark just hours earlier.
The sell off was joined by a quite sharp jump in hourly volume. In the previous days our hourly on Bitfinex was riding at around 300-600btc and our spike down was with 16,000 btc!
The last time we saw this kind of downside concentrated volume was back on 6th Sept during the selloff that saw #bitcoin drop about 1100usd in the space of less than 24h. Interesting the time of that hourly spike in volume is exactly the same hour as this one!
Our chop indicator has dropped to the 54 handle so if it wishes, there is still some juice behind this drop, though volatility has not been yet nudged off its downward trajectory.
The daily chart...
We have re-entered our wedge. There is still space below us till the lower support line at 6200 usd. A drop below this will look for support at the 6k market structure point.
My gut is telling me this is the last charge of the bears. The bulls have the game in hand but have not really gained control of the field. They have to repulse this charge and hold the 6200 or the 6000 lines.
As we approach these lines, there will be more and more stop loss orders triggered which will flush the order books with more sell side pressure.
There is a dip buying opportunity opening up for the intrepid.
As always guys, leave comments, have fun and trade safe.