BTC Breakdown
A weak breakout from the wedge followed by a breakdown from the neckline of a head & shoulders , and extremely low volume , all together spelled disaster. I had put out a call privately to short when the neckline broke, and to add to the short when support at 7050 broke. Both proved to be the correct moves.
Of course, the best move was a short at when the first Fibonacci level broke after the high from 10k, which is always the best move during a pullback.
But that's the past... Where is BTC -0.70% going now? As we can see from this chart, there are many trendlines that we can draw, and most are broken. The price remains between two prior lows and between two Fibonacci levels. The RSI is very low, which should bring in some buyers, but this likely won't happen until the price nears one of the marked levels. Various potential targets are also labeled based on Fibonacci retracement levels and prior support/resistance .
Once a clear bottom is found, long positions could be very cautiously taken. Given that all signs of a reversal from 7050 are invalidated, we should presume we remain in a long-term bear market. The best positions are short, taken after a bottom and top are confirmed, opened at the first retracement level, held open until the next level down is not reached and it pulls back to the lowest level broken--meaning, trail your stops down one Fibonacci level at a time.
Of course, the best move was a short at when the first Fibonacci level broke after the high from 10k, which is always the best move during a pullback.
But that's the past... Where is BTC -0.70% going now? As we can see from this chart, there are many trendlines that we can draw, and most are broken. The price remains between two prior lows and between two Fibonacci levels. The RSI is very low, which should bring in some buyers, but this likely won't happen until the price nears one of the marked levels. Various potential targets are also labeled based on Fibonacci retracement levels and prior support/resistance .
Once a clear bottom is found, long positions could be very cautiously taken. Given that all signs of a reversal from 7050 are invalidated, we should presume we remain in a long-term bear market. The best positions are short, taken after a bottom and top are confirmed, opened at the first retracement level, held open until the next level down is not reached and it pulls back to the lowest level broken--meaning, trail your stops down one Fibonacci level at a time.
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