Please refer to post from yesterday for a broader BTC/USD look.
We saw the trend resistance line hold strong last evening and produce bearish price action most of the day, just as the charts told us might happen.
Currently, we are seeing a small head and shoulders pattern on the 30 min chart. Not only should the head and shoulders be visible in the price action but ALSO in the volume. This gives us a stronger indicator that we will see lower prices than current.
This does not mean panic, when using small time frames expect smaller impulse moves. This is just bringing some more indication to a visit to the teal trend line from September.
Keep watch for extreme volume. For the bulls, they want extreme volume... but want it tomorrow on a bounce off the trend. For the bears, they want extreme price action TODAY to hold price action BELOW the teal trend line.
Tomorrow is the expiration of the CME futures. It's unsure how drastically the futures have actually affected the market directly. Indirectly we can see a bearish sentiment of FUD as we all assume the whales crashed the price AND shorted their futures. If this was the case, I think we all feel that the same whales could be using their profits to scoop up some cheap bitcoin tomorrow.
It is possible to see another major sell of bringing us to 8k+/-.
I beliee for CME that if the price fluctuates by more than 7% trading is halted. And since it ends tomorrow 11am EST you would expect the price to see dropping already. Which unfortunately is not the case. And there's also not much FUD...
Troy_Brave
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@severt, I don’t believe the futures themselves effected the markets as much as it effected the sentiment of the market. The market was over bought at 19k and needed a catalyst to sell. I believe the idea of the concern for whales to open short contracts and simultaneously crash the market was the FUD... and we can see after a month of selling that was the case. We will see how February responds to the new contracts! We are oversold at this point.