bitcoin is approaching the death cross of the weekly 30 and 50 MAs. These MAs have been important in the bear market. Short opportunity as price intersects with the pending death cross.
The death cross is inevitable as the earlier weeks with 5 digit prices get rolled out and replaced by 4 digit prices. MACD at its peak when price hit $10,000 back in May.
If the price confirms a move down we could see the move to $5000.
If the cross does not cause a bearish move we could test previous resistance at $10,000 if the price can successfully pass the daily 200MA. Green lines represent the bullish targets, yellow box is bearish target.
Watch out for the fake out in either direction. If we go down watch for the lower light blue trendline that acted as support in Feb and April.
The death cross is inevitable as the earlier weeks with 5 digit prices get rolled out and replaced by 4 digit prices. MACD at its peak when price hit $10,000 back in May.
If the price confirms a move down we could see the move to $5000.
If the cross does not cause a bearish move we could test previous resistance at $10,000 if the price can successfully pass the daily 200MA. Green lines represent the bullish targets, yellow box is bearish target.
Watch out for the fake out in either direction. If we go down watch for the lower light blue trendline that acted as support in Feb and April.
Comment:
Approaching technical targets. RSI is a good indicator watch during the down move to measure the impact of the daily price/RSI divergence. Daily divergence suggests daily RSI will bottom out around 30 - we are nearing this now. MACD stil has a long way to go and the death cross will begin on the weekly on the next candle. I'm losing 20% of my short around 6800-7000 and the remainder im holding open as im inching up my stops.
Trade active:
I've been adding/reopening shorts throughout this move. The price action around 6k does not signal a bottom. We appear to be in a flat bottom triangle. The triangle breakout on the linear scale would completely wipe out price - impossible. On log scale we can see how a similarly sized move to 3k is possible, if we continue to follow 2014. Falling to original price target of 5k given the new flat bottom triangle makes little sense., surely a larger move is to be expected after breaking such a major support zone, panic selling is likely to follow.
Trade active:
Short positions remain open until we cross the white line, near term resistance