As the most famous saying in crypto says: "The trend is your friend until the end" | We can all clearly see the trend is downwards for now. We've been trading this since that local high and at the time of writing this "analysis", the price stagnates right in the middle of the .
Bitcoin is more on the side for 4 main reasons. The first reason is the local downward trend. The second reason is the recent breakout from the . The third reason is that institutional investors believe that the price is at the highest since the last rally. The fourth and most important reason is the US economy and the second wave of Covid-19.
For now, it looks like bitcoin will keep going down and the next is right at 8643$. It also happens that 8643$ is right at the bottom of the local . I would most likely be taking profit right at that price and possibly reenter a long position with a target at around 9400$
For those who are sitting on the sides at the moment with no position at all, I would say it would be kinda risky to enter a short-term position today having in mind that we are right at the end of June and we await the next move on S&P 500 . ( bitcoin and S&P are directly correlated for now)
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