Bitcoin Just Did This For A Fifth Time In Its Entire History!
I have some bad news. Bitcoin has, for the first time since February 2018, closed below the Daily 200 Moving Average. This has only happened 4 other times in Bitcoin's ENTIRE price history, 3 out of those 4 times it started bear markets lasting at least 6 months, where the price stayed under the 200 MA. The outlying time, it only lasted 2 months and was seen as a short term 'blip' You can see this here.
I have labeled targets at 7275.00 and 5430.00 due to confluence with fibs, geometrical, and trend line support suggesting a bounce at these levels. There is a possibility we never reach these levels, but this is highly unlikely, since there are futures gaps at 5-6k we can take a guess that we will be dropping more. If our first target of 7275.00 breaks, we can expect a huge drop in a short amount of time, since most traders are planning on buying at the .618. If so, we can look at 5430.00 for support because of previous confluence at this level, which I have labeled. However, if our second target of 5430.00 breaks, it will not look good for Bitcoin's long term potential of entering a bull market, as this will take us dangerously close to the previous lows and low volume trading range of 3-4k.
Bitcoin could also come up and retest the 200D MA and reject it, giving us an option of opening a long with a clear target, here is an example of what this may look like.
Less likely, there could also be the possibility of this being a fake-out, which would be the third time in Bitcoin's history, the first looked like this, back in 2013.
Based on these probabilities, and the fact the triangle has recently broken down I would recommend looking to get into a short position and take profit or set up longs at the targets I have mentioned.
I hope I made good use of your time today!
That will be all for this Bitcoin analysis!
As always friends, I wish you good luck trading!
And thank you for supporting me.
-Trader Demo
I have labeled targets at 7275.00 and 5430.00 due to confluence with fibs, geometrical, and trend line support suggesting a bounce at these levels. There is a possibility we never reach these levels, but this is highly unlikely, since there are futures gaps at 5-6k we can take a guess that we will be dropping more. If our first target of 7275.00 breaks, we can expect a huge drop in a short amount of time, since most traders are planning on buying at the .618. If so, we can look at 5430.00 for support because of previous confluence at this level, which I have labeled. However, if our second target of 5430.00 breaks, it will not look good for Bitcoin's long term potential of entering a bull market, as this will take us dangerously close to the previous lows and low volume trading range of 3-4k.
Bitcoin could also come up and retest the 200D MA and reject it, giving us an option of opening a long with a clear target, here is an example of what this may look like.
Less likely, there could also be the possibility of this being a fake-out, which would be the third time in Bitcoin's history, the first looked like this, back in 2013.
Based on these probabilities, and the fact the triangle has recently broken down I would recommend looking to get into a short position and take profit or set up longs at the targets I have mentioned.
I hope I made good use of your time today!
That will be all for this Bitcoin analysis!
As always friends, I wish you good luck trading!
And thank you for supporting me.
-Trader Demo
Comment:
Will be entering a long here with a stop loss at 7810 for a possible short term ascending triangle break-up. Tp at 8250 and 8350
Trade active:
This above trade is still active.
Trade closed manually:
Closed at 8200, due to the poor breakout attempt by bulls.
Comment:
Oof.
