Bearish trend on Bitcoin with 61.8% retracement
Well dear readers, as you may know, we remain bearish on Bitcoin, for now that is.
The attached picture shows how and an additional proof of this bearish direction. Since May 2018 we can see a bearish wedge pattern, see the picture below.
Retracements seem to end on the 61.8% several times which could indicate that it will retrace to the same level now. This could mean it is nearing a correction after it reaches another low. So when hitting a new low it will complete the falling wedge.
So it’s been a while since we wrote about bitcoin. As you may have noticed, bitcoin remains bearish. Currently, some intraday corrections are going on. But I do think that the bearish sentiment will commence in the next few days.
Bitcoin met some resistance in late July. Looks like bitcoin will decline equal leg from its top from July to swing low from mid-August. So bitcoin dropped from 8400 to bit lower than 6000. In September bitcoin made a new lower top of 7366, so this could mean that Bitcoin can drop to about 5000-5400 from here.
Of course, only time will tell and technical analysis will be necessary along the way, for the coming weeks at least.
The 6172 pivot level in early September was a key level to rally higher. But be aware of new lows from here. Even when it becomes more complex and choppy, Bitcoins, for now, has no reason to go up much more.
Once again the Crypto market made a predictable move. We recently saw a pretty clean recovery on the BTCUSD and related cryptocurrencies. On the 4H charts Bitcoin made an extensive move up which means that a pullback may be imminent.
This pullback may be a bit steeper than normal on the other cryptocurrencies which are slightly weaker. This may as well be the XRP, as an example.
The US stock market will be the catalyst here.
The Nasdaq100 can cause a drop to the cryptocurrencies. So be aware, if the stock head south, keep your money in your hand yet and don’t spend it on the cryptocurrencies.
Always buy low and sell high, not the other way around.
Currently, from a technical perspective, the stock market looks a bit bearish.
Update dated 7 March 2018
Bitcoin broke through the upper trend line on 2 March and went on north to reach a temporary top around 11.659.
Currently, the asset is making a drop which looks like a correction, going back to the trendline.
We expect a bounce once it reaches that upper trendline which now looks like to function as a support line.
Look for a bounce from that trendline or break through that trend line, which will make matters even more complex. In that case, it will be a waiting game.
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