BTC Update 09.08.2018

As a continuation from the last market update, bitcoin and the whole cryptocurrency market went through severe losses the past few days.

Even though a lot of technical indicators were pointing and signalling buys at $6450 levels, we warned you that once $6800 support broke, hedging and shorting would be the best options to protect your capital in the massacre of blood.

Now we approached a low of $6133 for the day, followed by a slight bounce up. What we find as a possible scenario is forming a Head and Shoulders pattern after the inverse H&S we had on the way up before.

This is a very common scenario on many assets, not only in crypto. The top of the right shoulder is landing exactly on previous support at $6800 which should be tested as a final kiss goodbye before diving deeper again.

If that scenario is to play out, safest way would be to close most of the short positions in the $6060-$6130 area and wait.

After the SEC delay of the ETF decision, there's not much to move the market up unless some black swan event appears.
It is certainly not the best for the community to hope on institutional money to revive its holdings, but since we've been opened to such powerful shorting tools it was inevitable to reach this point as traders always claim their share.

The target of this bear run remains same as we've currently been overtaken by bearish bias. The pattern will be invalidated if we break $6855 resistance.

Trade safe!