I am going to break one of my rules and I am ready to short Bitcoin!!
After a bullish run we have seen a consolidation move that has lasted around 2 months. The strong support at 9950 ha been tested many times, the last of which was a very strong bearish move followed by a weak recovery to touch the MA50. RSI has been losing strength during those 2 months and I believe this is a sign that Bitcoin could break down for the time being.
That being said, we are being faced with various levels of support. The first one will be the trendline from beginning of April (start of bullish run) at around 9300 which is also a weak horizontal support, then we have support at 8400, if thats broken we will face MA200 and the very strong support at 6000. I believe we can see Bitcoin back at that level before it resumes another bullish run.
do you think its gonna swoop right down to around 6000?
MicKi
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@Bsquat, Impossible to know. We are facing various degrees of support on the way. I believe a move to the 8500 level is very probable but then we will be facing MA200 and horizontal support, if that is broken 6000 is the next area of interest.
It could also just skyrocket from the trendline. This is a game of probabilities and I think the odds are in our favour by shorting right now and keeping an eye on any bullish move to exit the position
MicKi
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@Bsquat, I saw ur notification but cant see ur message here. U can also place a SL under the lows of the last hour candle and maybe TP at break even if u have a long position or even keep it running. It is a very tight SL so the R:R is good. That is if u already have a long position in play