Earlier on in the week, we had been bearish on BTC and suggested that a rebound down to 6500$ could be imminent. Never the less, a lot has happened since then - Our stop loss for our short position, which we had accumulated in ladder style (shorted some at 6700 and at 6800$ has been taken out (HIT). Never the less, we did not short the full amount we had expected to short due to the risk of a bullish movement (this was outlined in our members group) - we had shorted up to 70%.
Fast forward to today, BTC has used the ascending trendline as support once again. It has done this previously at two other price levels, @ 3350$ & at around the 2300$ mark. This led to the single biggest rise in one hour since the downtrend. The surge caused a spike as high as 8k. Never the less, bullish activity was later impeded once we had hit the downtrendline from 20k - causing BTC to close below the downtrendline. Thus far this is the 4th retest of the down trendline and we may even break it. In order, for a break of the downtrendline from 20k to be achieved we'd need to close above the 8200$ mark.
What i believe will occur is that we will most likely return back to the 7400-500$ level or even lower to consolidate at 7k. This is because RSI and other indicators are showing weakened momentum from BTC - it is currently in extremely overbought territory on the 4 hour. Moreover, for BTC to gain more momentum we will need to decline to the red ascending line on RSI and maybe find support once the line is hit. But, for this to occur this will mean that price has to make some sort of retracement down. It should also be added that a long consolidation at around the 7.5k mark is not good for bulls as this may give opportunity for the bears to enter the market.
Follow our telegram down below to receive up to date break downs of the market.
Fast forward to today, BTC has used the ascending trendline as support once again. It has done this previously at two other price levels, @ 3350$ & at around the 2300$ mark. This led to the single biggest rise in one hour since the downtrend. The surge caused a spike as high as 8k. Never the less, bullish activity was later impeded once we had hit the downtrendline from 20k - causing BTC to close below the downtrendline. Thus far this is the 4th retest of the down trendline and we may even break it. In order, for a break of the downtrendline from 20k to be achieved we'd need to close above the 8200$ mark.
What i believe will occur is that we will most likely return back to the 7400-500$ level or even lower to consolidate at 7k. This is because RSI and other indicators are showing weakened momentum from BTC - it is currently in extremely overbought territory on the 4 hour. Moreover, for BTC to gain more momentum we will need to decline to the red ascending line on RSI and maybe find support once the line is hit. But, for this to occur this will mean that price has to make some sort of retracement down. It should also be added that a long consolidation at around the 7.5k mark is not good for bulls as this may give opportunity for the bears to enter the market.
Follow our telegram down below to receive up to date break downs of the market.