* Left chart is daily and right chart is weekly
Bitcoin appears to have had it's relief rally to the 20 EMA (left chart) and appears to be in the midst of a rejection at these levels, although there was relatively good volume it is presently lacking follow through. This rally was not hard to foresee, given the extreme oversold condition present at the time (look at the RSI reading for an example of such condition).
Unless Bitcoin can get a reversal will good volume underway, the next leg down is likely to be at the 61.8% fib retracement (right chart) around $5,500-$5,000 USD, this would also correlate quite nicely with the prior consolidation as well as the 200 weekly simple moving average (SMA).
Another bearish note is the failed weekly rally (still in progress at press time) to recapture the 49 weekly EMA, adding to the near-term bearish positon.
As i noted on my prior update (well worth a read might i add), it appears as though traders are taking this relief rally as an opportunity to lighten up their exposure in the face of lower prices near-term.
I would suggest caution, as further downside is the only picture that Bitcoin is painting, barring unusual trading activity by a big player.
Bitcoin appears to have had it's relief rally to the 20 EMA (left chart) and appears to be in the midst of a rejection at these levels, although there was relatively good volume it is presently lacking follow through. This rally was not hard to foresee, given the extreme oversold condition present at the time (look at the RSI reading for an example of such condition).
Unless Bitcoin can get a reversal will good volume underway, the next leg down is likely to be at the 61.8% fib retracement (right chart) around $5,500-$5,000 USD, this would also correlate quite nicely with the prior consolidation as well as the 200 weekly simple moving average (SMA).
Another bearish note is the failed weekly rally (still in progress at press time) to recapture the 49 weekly EMA, adding to the near-term bearish positon.
As i noted on my prior update (well worth a read might i add), it appears as though traders are taking this relief rally as an opportunity to lighten up their exposure in the face of lower prices near-term.
I would suggest caution, as further downside is the only picture that Bitcoin is painting, barring unusual trading activity by a big player.
