walkerjitzu

Lower High set, Trend Reversal

Short
BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
A new lower high as been set at $10,000, where Bitcoin got massively dumped for 2,000 points. The line coming from the downtrend from the last two peaks of $14,000 and $10,500 proved to be the roof of this seemingly unstoppable rally, exactly on time with the halving, which is happening today.
The general sentiment is still that this was just a shakeout, and that this market will inevitably keep going to the moon. However I think that this uptrend has pushed itself way too far already, moving up in a straight line, as well as all the other stock markets, and that economy and the world are going to have to face the facts and so new bottoms are likely to be found. For Bitcoin it could be in the low $2000's.

But, that's for later! Looking at the near future, where is the market going? We can see that Bitcoin has been moving up a clear trend, market in the chart with thick white lines. The bottom of it has already been tested yesterday, and got only a small insignificant rejection. Is very likely that Bitcoin is going through it soon, because of the strenght and the volume of the dump. Next target seems to be at $7800, where sits Fibonacci retracement 0.382 of the whole rally, and another important trendline (in yellow). Next, there is the strong support/resistance at $6800, where Bitcoin has wiggled around many times during the past two months.

Looking at technicals, RSI on the daily also broke down from the upward movement, signaling a clear shift. MACD daily has just crossed, which is also a strong bearish indicator.


Cheers!

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