Bitcoin confirmed this new upwards trend line after the V bottom we've had recently.
Healthy and strong Bull trend.
The corrective move down onto horizontal support coinciding with the trendline, with the sharp rejection of sellers shows a healthy pulsing trend line.
Lots of other things at work as usual, one must remain open to both sides as it can change any time.
BTC looks heavy:
1) Shorts closed off from ATH, yet we didn't get a proportionate squeeze - This shows tons of selling pressure still holding price down.
2) Due to being in a secular bear trend shaking off the last off the capitulators likely too many sellers still.
3) Tax season ends 31 December for USA - Due to tax harvesting and so many traders losing so much...
After yesterdays face melting $1300 candle,
$6800 supports still holding on finex and still at a $100 average premium.
(yesterdays chart linked in related)
On other exchanges Bitcoin retraced back inside the triangle.
Good to get perspective. Lets see if we breakout on other exchanges, which will be extremely bullish.
Right now looking bearish
(Rsi %K cross, big bear 1D candle
6200 could hold, and we reverse,
Or we could make another leg down into capitulation or more consolidation.
Altcoins highly correlated and have followed btc down, most retracing 10-13%.
Glad to see some blood on the battlefield :D!
A strong bearish sign, but a break of tenkan would be a much stronger bearish signal.
If you're playing agressive you may want to cut, if not you could stay in if/until Tenkan snaps. This all depends on where your entry was and what your risk management plan is.
Not Financial Advice - DYOTA