News from China pushed the markets down. Bitcoin dropped below SMA100 and 4400.00 support level. It's a signal that now we should expect further downward movement. The market can reach 4000.00 support level one more time. This support level is strong and we have to watch for price action closely. Also 4000.00 support level is the key level for future price movement. If the price bounces from it, it will be a confirmation of possible upward movement and new buy opportunity. Indicators will have to confirm price reversal. If the market breaks it and moves lower, we'll see falling to 3700.00 levels and even lower. Will it be a short term downward movement or the same correction like it was in June? We'll get more understanding within several days.
Interesting, as 4000 level also marks the completion of left shoulder for a larger H&S pattern. We saw a smaller H&S on 4hr chart complete on 09-03 when prices hit 4500. Volume wasn't great, but the 4000 price target hit on 09/05. If we see confirmation beneath 4000 we could be looking at a new target around 3000 based on H&S starting back to August. The battle at 4000 could be epic.
Bkay1896
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*Fake News from China ;)
DLavrov
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@Bkay1896, useally, after fake news the markets move back quickly. When we see Bitcoin above 4600.00 level again?
Bkay1896
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@DLavrov, you tell me. its just confirmed that it was fake news. scary how fast the market reacts on sth like this.
sandrodz
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@Bkay1896, fake news confirmed by some random tweets, hm. which fake outlet can we trust?
DLavrov
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@Bkay1896, I don't know exactly, fake or real... I just wrote about how markets move after fake news.
Bkay1896
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@DLavrov, no, Im sure its fake news ;). you tell me when we see BTC above $4600 ;)