I´ve had a wonderful holiday in France and ignored the messages from cryptomarket and others. But I´ve been horrified by the plummet of prices when I returned! What a mess.
The reasons why bitcoin (and the altcoins even more severe) has fallen down on the last low at ~ 5.820$ are in my view speculative. Perhaps smart money whished to squeeze out some weak hands. Or it was caused by short sellers.
What is important to be mentioned is, that the last low has been a strong support-level. You see the negative trend channel in red and if the dynamic would have been stronger then the lower limit of this channel would have been tested - but it hasn´t.
I think we´re now on buy - levels.
A) Volume is rising
B) RSI has turned and is about reaching the neutral zone
C) MACD has just triggered to the top
The first aim would be the swing trend line at 6644$, followed by 7320$. At that point the price would reach the EMA 200.
Each move to the downside would be an alarm-signal.
I´ve drawn three circles. The beginning and the end of each are on the same level and "nearly" within the trend channel. If this pattern would be repeated a third time we would end on the last low!
So even if I think we´re on buy levels the risks are high, that the last low would be tested another time!
The reasons why bitcoin (and the altcoins even more severe) has fallen down on the last low at ~ 5.820$ are in my view speculative. Perhaps smart money whished to squeeze out some weak hands. Or it was caused by short sellers.
What is important to be mentioned is, that the last low has been a strong support-level. You see the negative trend channel in red and if the dynamic would have been stronger then the lower limit of this channel would have been tested - but it hasn´t.
I think we´re now on buy - levels.
A) Volume is rising
B) RSI has turned and is about reaching the neutral zone
C) MACD has just triggered to the top
The first aim would be the swing trend line at 6644$, followed by 7320$. At that point the price would reach the EMA 200.
Each move to the downside would be an alarm-signal.
I´ve drawn three circles. The beginning and the end of each are on the same level and "nearly" within the trend channel. If this pattern would be repeated a third time we would end on the last low!
So even if I think we´re on buy levels the risks are high, that the last low would be tested another time!
Trade closed manually