Brace Yourselves | Consolidation Coming to an End
So, this past week was rather flat for Bitcoin in comparison to the previous ones. We saw the market consolidate further up but essentially become flat due to the very important resistance level of 6900. We saw it retest the resistance MULTIPLE times on the lower time frames, and yet, failed to breakout of it every, single, time. Despite the positivity coming from the global markets this week, Bitcoin didn't seem to correlate much within their volatility as it did before. Sellers are still in charge and they are refusing to be fooled by the news trying to say "everything is alright, the collapse is over". No, it is not over, it is merely a pullback before another upcoming dump and Bitcoin investors are well aware of it. Should we see a possible chance of breaking above our consolidating wedge, then we will instantly see a huge wave of FOMO buying power coming into play, which will ultimately boost Bitcoins price higher...but do you really think this will be the case?
CME futures are going to be closing in the next 8 hours of the time of writing this and Bitcoin is circulating around their major resistance area as well for now. A lot of volatility usually comes in before closure time, where we will see huge moves being made by either sellers or buyers, giving us a better perspective of which direction the volatility will head onwards. My bias remains bearish (as stated within the previous posts), and I'll be looking to take further shorts if we manage to reach our resistance levels of 6800-6900 again. Should we see a clear breakout of the ascending trendline and the current level of support around 6400, then I'm afraid it's all going to be downhill from there FAST. Sunday will definitely open up with a huge gap on the CME futures, the question is, are you ready for it?
The mining industry is also looking interesting for Bitcoin at the moment. As soon as the mining difficulty dropped by 16%, we instantly saw the BTC hash rate pump up from 75m TH/s, all the way to 113m TH/s. I guess everybody turned on their farms again once they saw how much lower the difficulty dropped. Normally this is a positive sign for the Crypto markets, but we didn't see it react to that point as much, which further gives me these bearish insights.
Either way though, let's see how we close off this week. I will keep this post updated if anything changes.
If you found this post useful in any way, feel free to leave a 'Like', it will be highly appreciated!
This is NOT a financial advice, trade at your own risk!
CME futures are going to be closing in the next 8 hours of the time of writing this and Bitcoin is circulating around their major resistance area as well for now. A lot of volatility usually comes in before closure time, where we will see huge moves being made by either sellers or buyers, giving us a better perspective of which direction the volatility will head onwards. My bias remains bearish (as stated within the previous posts), and I'll be looking to take further shorts if we manage to reach our resistance levels of 6800-6900 again. Should we see a clear breakout of the ascending trendline and the current level of support around 6400, then I'm afraid it's all going to be downhill from there FAST. Sunday will definitely open up with a huge gap on the CME futures, the question is, are you ready for it?
The mining industry is also looking interesting for Bitcoin at the moment. As soon as the mining difficulty dropped by 16%, we instantly saw the BTC hash rate pump up from 75m TH/s, all the way to 113m TH/s. I guess everybody turned on their farms again once they saw how much lower the difficulty dropped. Normally this is a positive sign for the Crypto markets, but we didn't see it react to that point as much, which further gives me these bearish insights.
Either way though, let's see how we close off this week. I will keep this post updated if anything changes.
If you found this post useful in any way, feel free to leave a 'Like', it will be highly appreciated!
This is NOT a financial advice, trade at your own risk!
Trade active:
Let the flush begin
T1 - 5700
T2 - 5000
T3 - 4300