Now literally every conversation I seem to be having lately is what is going on with this Yo-Yo market. Well it should come as no surprise that what is causing the effect is Bitcoin . It is affecting us all. I got caught on a Bitcoin Cash trade which was going perfectly until Bitcoin met resistance and took the whole market south again. I took my eye of the ball and allowed my trade to run into the weekend. Never mind. Anyway here are my thoughts:
Personally I like to see where the action is happening (plus I think this could all happen within days not weeks now) so this is completed on the 15 min chart. I have therefore added the approximate 50EMA and where the top of the ongoing downtrend would be as dashed horizontal lines for representation only. Obviously they will be different as time moves on.
We all know that yesterday after hitting the downtrend resistance BTC was heading lower but there was a rally today from approx. $7,853 and more buying came in at $8,000 (There was a lovely on LTC at the same time) things were looking up until the dreaded 50EMA was reached.
That's all we know for sure for now and from here on out these are my thoughts, nothing more.
BTC will continue to drop until we see strong enough support at one of the support levels. As people like round numbers it could very well be $7,500. Who knows.
Perhaps there will be enough of a buy in to pass the 50EMA and break the . However what might occur is that we may experience a further low bounce and the past few days history will repeat itself.
Alternatively and what probably needs to happen is that we may pass right through the $7,100-$7,800 resistance levels and re-test something in the $6,000 - $6,831 range. Possibly lower but not much. This is what we will need for the added buying required to push us back into a bull market.
Whatever happened the time for the bears is running out. The ranges are getting tighter and tighter every day.
As for buying I am happy to buy anywhere from $7,500 downwards and hold.
Once the bulls are back in control we will all be wishing we could top up anywhere below $9,000.
Luckily I have business ventures which can manage themselves so I will be monitoring this closely. I will update as things go.
All constructive feedback welcome.
Thank you for reading.