veerakumarnice

Sell off could resume if there is a break below 6900

Short
BITFINEX:BTCUSD   Bitcoin
BTCUSD

Whenever a bottom is found btc is followed by a quick bounce with high volume. But from the chart it is seen that heavy buy at the bottom with decreasing volume with increase in price suggesting lack of confidence of the movement. And BTCUSD has put a inverted head and shoulders pattern. If at all it breaks below 6900. The pattern would become failed and the sell off could resume and possibly extending the losses upto 5400 ( 0.786 retracement calculated from previous cycle high 1175 to current cycle high 19891, also it is Nov 12 daily Low ).

Note : despite the heavy volume buy in the 7100 range btc still pushed it below suggesting that bears have a strong grip over the trend. Only an unusual heavy volume break over the resistance area could make short term bull reversal.
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