Sadly for those in the Bitcoin
world, today was a very negative day for the cyrpto-currency. Viewers of our show last night should have left feeling the bearish
tone to the current environment and indeed, that bearishness has played itself out. Technically, a rather ugly fail at the top of a well defined trend channel and a looming weekly OTE
zone were two reasons alone to look lower. Consider too, the pending fundamental selling deadlines for those within China, and I suppose you could make the 'rational' case for a bearish
scenario. Interestingly, those downside technical objectives have now been hit and one has to be left with a feeling of, 'is it over for now?' While our over-bought / over-sold indicator is very much 'stupid' at the moment (and really that seems to best describe price action
) neither raw momentum ( MACD
Historgram) nor volume
(OBV) have bottomed in earnest. The current 'dead-cat-bounce' has brought us back to the 13ema and the bottom of the trend channel. These two barriers may put a lid on prices for the time being. Should we test these recent lows and they hold, a move back above these recent highs might represent a 'double bottom' and if so, I shall pay close attention to what the indicators are suggesting at that point. Should a bottom come in (and we recapture the trend channel) the current OTE
short sweet spot (where institutions will seriously consider shorting again) is right at a significant 'battle line' noted on the chart above.
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