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Bitcoin Update: Large Drop Could Signal Reversal Back To 6200

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
This morning a large drop caused the price to break through the buy area I said to watch for a reversal in yesterday's update.

We did see a small reversal take place from the tiny area I said to watch (outlined in red), but it didn't last long and it didn't cause the price to rise that much. The fact that we've now seen the price break through the area and below the low of the large wick (red arrow), suggests that whoever bought Bitcoin to cause the wick to form has either A. now lost money or B. bought as a investment. In any case, we could now see the price fall back to the buy area that caused this entire up-move to begin, found between 6033 - 6253.

Although I think the price may now fall back to this buy area it could still reverse at the area located just above, which it's reacting to right now. At the moment the price is only on the edge of the area. I think if a reversal is going to take place we'll see the price drop deeper into the area and then reverse.

As always, if the price falls deeper into the area keep an eye out for reversals signals in the form of candlesticks with large one sided wicks and candles with bodies bigger than the candle found immediately prior.

I'll keep you updated.

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