Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Description
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The good news is that we pounded the table on a Bitcoin (BTC) rally would be a 2020 phenomenon. The even better news is that it looks like bulls will be able to buy Bitcoin (BTC) at remarkably low prices.
With Bitcoin (BTC) below 8k, the possibility now exists of a move to either 6500 or 4000. The long listless consolidation near 8k and then the break higher this morning reminds us of the consolidation around 6500 in 2018. Back in 2018, once the break below 6500 unfolded, Bitcoin (BTC) crashed. In this case, today's drop below 8k has the potential to trigger a much decline. This potential drop could be similar to what happened to Bitcoin (BTC) in November of 2018.
The price action in Ethereum (ETH) and Litecon (LTC) are also good indicators that a much more severe down move is unfolding.
Bottom Line: To us, there isn't a big difference between being neutral or negative Bitcoin (BTC). In this case, people have to protect themselves from this decline, particularly with a U.S. holiday approaching. If you remember, in 2017, there was a massive move in the direction of the prevailing trend. In 2017, the move was up. The current situation could lead to a Thanksgiving down move.
Just stay out of the way for now and protect yourself.