BTC / USD - December 18th, 2017

That was the date which saw the indicators I track on the above 3-day chart that caused the dark green strip to illuminate (Green column / dark green column - Callout below - upper black circles). I’ll not articulate here was conditions I use, it is a script I wrote some time ago. What does it mean? This overbought condition I consider hazardous, not only is a collapse in price action very probable, it'll very likely be deep. In previous bull markets Bitcoin has always enjoyed support on the 21-week / 147-day moving average. At this moment in time that support is 35% below @ $12k.

The Lower black circles are telling us something else, MFI support has now confirmed as ‘broken’. Price action is certain to collapse in the near term.

The lower orange line is a major trend line. At around $10-$11k I would expect a test of this trend as support before continuing to higher highs.

1st target $12k.

If the above target is not held, $9.6k is the next.

Comment:

Heads up! Regular bearish divergence emerges on the 6-hour chart.

Do not try and buy this dip - you'll lose your fingers! Wait 10 days at least.

Trade active

Comment:

The journey to $12k begins.

For the moment the oscillators suggest the reversal shall continue at least into the first 10-day of December.

Comment:

So far so good. Ideally this correction will be over and with before the month comes to an end.