We left Bitcoin overnight to track the parallels lower to the
next downside target at 8300 on Coinbase chart. The low so
far is 8310. Close but no cigar.
Bitcoin is still under pressure whilst unable to break above the
dynamic which has clipped all rally attempts overnight -
cannot be bought unless it breaks above this dynamic and
regains 8610 and holds there - only if we see this price action
develop can we go long for 9093 and a test of the upper larger
parallel where will look to close and maybe reverse short
again at that point if touched.
But until we see that the selling pressure remains. It has to
hold now at 8300 or we have another poor day about to
unfold. Some day traders will buy here around 8310 but with
stops close under 8300 and ready to reverse for small loss if
wrong if 8300 is broken now. On the downside the next short
kicks in on a break below 8300 . There's minor support at 8150
which may create a little bounce but the next support any
significance below 8150 is at 7830 on Coinbase, then 7500 and
A break below any of these levels by more than 30 points or
so should lead to a test of the next level
Tracking down parallels which have developed better overnight now.
Heading to next support line at 8367 - failure to hold will trigger further shorts back to 7887. The next supports below here stand at 7446 and then 5434.
Bitcoin is still weak whilst trapped within the parallels but is trying to hold up off the lows at 8431 on Bitfinex. If still short can lower stop to 8555 - maybe close out if 8430 holds now ...or can use the upper paralle as final exit but that is quite a lot higher so not a bad idea to close out at least half here and then decode on the remaining 50% depending on next price action for here...
Longer Term Bitfinex Chart
Still caught within a downtrend defined by the dynamic above price now. Selling pressure stays on until that line is broken on the upside - but there is still hope of support off the dynamic at 8160-8150 which has held so far today...the next support any significance below 8150 is at 7830 on Coinbase, then 7500 and finally 5656.
Am closing out shorts now and only going short agin on a break below 8150 on Coinbase. And on upside am only. going long once the dynamic here is broken above and then holds on retest above 8300 on Coinbase
Bitfinex Chart Update
Good clean downtrend here - can either close shorts around here or stay with it until the upper parallel is broken on updside and holds up on retest from above once broken - then will look to switch back to longs again - but until we see this happpen the selling pressure stays on and the bears won't back off