Hello everyone!
Wow what a bear move!
A quick reminder from the market that this bearish period is far from over.
Let's take a look:
Before reaching the trendline at $7500 price got rejected at this green resistance area. My assumption was a retracement back to the $7000 levels, thus having the chart form a higher low, but BTC broke through all support levels and is now being traded in the $6400 ranges.
That's a retracement of some whopping 15% in just about 16 hours.
If this dump occured because Goldman Sachs cancelled their plans to open a trading desk for cryptocurrencies or not we can't say, however if you are trading indicator divergences you might have caught this short trade nonetheless:
Who needs insider information when you have TA!
Right now this seems to be a dead cat bounce and those usually tend to rise to the 0.236 and 0.382 Fibonacci levels.
So to some traders a long entry may be tempting right now, considering Btc has retraced well over 60% of it's entire previous rally and the RSI is vastly oversold on the hourly timeframes, but as of writing Btc is not showing any strong signs of a bounce upwards and long entries must be placed with extreme caution.
Especially in regards to the bear flag Btc is forming right now:
In case of a further decline downwards the next price target is this $6150-$6250 green box
where we have strong support and are very close to our beloved $6000 range.
Since this downward movement happened so quick and violently at the same time I doubt that the bears have enough force to break the $6k bottom right away. But please don't take this as a fact, anything's possible!
I recommend to simply sit on the sidelines and watch things unfold.
With a little bit of patience we might have a much clearer picture of where Btc's price is heading to very soon.
Thanks for reading and stay safe out there!