This weekend took a surprising turn for Bitcoin, it dumped back to $6300, before retesting $6775. These moves printed on the 1W Time frame, the first Higher Low we have seen in Months.
COULD THIS BE THE END OF THE BEAR MOMENTUM?
Unfortunately, no, despite everyone’s more bullish sentiment and Altcoins printing 20% moves across the board, Bitcoin is undecided where to go next. Its inability to break out of its momentum, was viewed as Stability. Thereby causing all altcoins to breakout of their downward pattern.
A notable Coin, NANO printed out 4X as a result of their technological endeavours and their newly founded marketing ability.
Impacts of London on Bitcoin
Today is a Bank Holiday in the U.K, those who are waiting for the traditional hundred dollars move up will be surprised to see that there was no move up, instead more volume dragged out of the market.
Lack of Volume Means what?
The decreasing amount of volume in the market represents a big move is about to happen. In Nouvive’s opinion, we will see a 3.40% move downwards for the reasons below:
Where is Bitcoin going today?
The inability to breakout of the downward trend illustrates a longer-term bear trend. The current bounces in Alt coins represent a cloud to shield what is actually happening: Bitcoin is about to see a RED MONDAY. We have not seen this for some time, this happened exactly this time last year, were every Monday, we saw Blood in all the coins. The same is about to happen for Bitcoin:
There is a lot of resistance as can be seen on the chart below, especially in the area of $6700, this explains why Bitcoin on all of the exchanges cannot stay above this figure.
Using Fibonacci, we can deduce that if Bitcoin does fall, it will settle to below the 0.5 Line, where there has been historical support, or between 0.5 and 0.382 – namely $6475.
If Bitcoin does fall further as a result of further sell side pressure, we could see it go all the way to just below $6300. This is owed by the further sell pressure in the $6425 realm.
Moreover, the CME Settlement date is this Friday, historically every time this has occurred, we have seen Bitcoin fall.
The RSI Stochastic explains an erratic behaviour, that Bitcoin using its sell pressure is unsure in what direction to take. However, it has become clear that it is time to short.
Nouvive issues a Sell for Bitcoin from $6695, Stop Loss $6725, with a take profit of 50% in $6475 and then $6300.
Always move stop losses up when in Profit.
Nouvive: Home of Crypto Beginners, Traders & Investors. Nouvive provides Cryptocurrency trading news, Analysis and indicators for beginners, traders and investors.
Information on these pages contain speculative statements that involves risks and uncertainties. Crypto-Assets profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell. Nouvive does not in any way guarantee that this information is free from mistakes, errors or material misstatements. It does also not guarantee that this information is of a timely nature. Crypto-Assets involve risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing or trading are your responsibility alone. For more information, please view the Risk Warning Below.