We believe that this is just a big bull trap.

The current price action is not bullish at all but on the contrary is very bearish especially if the daily chart closes under the pink trend line .

Once again we can see the power of fibs. The price got rejected at the 0.5 from swing high to swing low, approximately at the same level as the 100 Daily MA. According to our fib based TA the price needs to break a 0.65 from swing low to swing high if we want to have a chance of seeing a bull run.

Bearish indicators:
- pierce of lower bb after an extreme squeeze
- FOR NOW rejection at the 0.5, 100 MA, POC and pink trendline (things could change until the daily close but for now everything is bearish ).
- huge premium on tether exchanges (rember GOX vs STAMP in the last months of GOX's life?)

As long as there is FUD surrounding Bitfinex and Tether and there is a huge premium on tether exchanges we will chart on the the average price from 4 USD exchanges: Bitstamp , Coinbase, Gemini and Kraken.


You still short?
@m5b11, Yes. We are still short and we still have a bearish view. As long as the price can't close above 7k on the daily timeframe we believe that there is a higher chance of going down than up. Of course we could be wrong and the descending can break up but what's the point of taking a trade with a low probability?
m5b11 NewMexCapital
@NewMexCapital, Makes me nervous to short or long atm. I see this as a neutral market.
agree with the above. for everyone else (the 90%), see below.

Simple things you need to understand:

1. Broken support becomes resistance.
2. BTC's $6k level has provided support for 7 months now.
3. Once it breaks, people will panic.
4. $6k will flip from support to resistance.
5. This could drag out the bear market for many more months.