Following the last update, Bitcoin has resumed its decline as expected. I mentioned before that we could see a slight retracement in price from the consolidation zone in the $8,200 area.
True enough, the bulls did manage to push price up all the way to $8,600 however was met with strong selling pressure. I made comment that the writing was on the wall and any rally was likely to be a bull-trap.
This was evident by the number of candles it took to rally, compared to the previous long red candles on the way down. This is naked chart analysis, look at what the chart and candlestick are telling you! (remove those lagging moving average indicators while you're at it!).
It should be noted there was an inverted head & shoulders pattern. However, this would have been a counter-trend trade. This pattern alone is not good enough a reason to initiate a trade and believe the bulls were in control.
Interestingly, the pattern failed to reach targets. This again, provided a clue that the buyers were losing control.
This was confirmed on the break of the rising channel.
If there is no large green candle anytime soon, Bitcoin will continue its decline.
Next target $7,100 then $5,350.
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
True enough, the bulls did manage to push price up all the way to $8,600 however was met with strong selling pressure. I made comment that the writing was on the wall and any rally was likely to be a bull-trap.
This was evident by the number of candles it took to rally, compared to the previous long red candles on the way down. This is naked chart analysis, look at what the chart and candlestick are telling you! (remove those lagging moving average indicators while you're at it!).
It should be noted there was an inverted head & shoulders pattern. However, this would have been a counter-trend trade. This pattern alone is not good enough a reason to initiate a trade and believe the bulls were in control.
Interestingly, the pattern failed to reach targets. This again, provided a clue that the buyers were losing control.
This was confirmed on the break of the rising channel.
If there is no large green candle anytime soon, Bitcoin will continue its decline.
Next target $7,100 then $5,350.
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
