Regardless of all these strong fundamentals ranging from CoinBase custodial services to Star Buck “acceptance of Bitcoin” via International Exchange, Bitcoin (BTC) isn’t finding any support. As a matter of fact, it looks likely that sellers might drive prices below $6,800 this week. Of course, when this happens, our long position would no longer hold.
[Re-Notice] The resuming of the deposit/withdrawal services for 9 types of crytocurrencies first
• List of cryptocurrencies (9 in total)
: BTC, ETH, ETC, XRP, LTC, BCH, ZEC, QTUM, MITH
•Open time : 4, Aug (Sat) 2018 19:00 PM
— Bithumb (@BithumbOfficial) August 4, 2018
Awesome. Here’s the link to their blog. https://t.co/beqXL23Ckv
— 🌜Crypto Goddess🌛 (@crypt0goddess) August 3, 2018
Overly, Bitcoin (BTC) prices didn’t build enough momentum to warrant further upsides.
From the charts, it’s clear that bulls are finding resistance at key resistance line and what we have after close of last week bearish engulfing candlestick mirrors events of those double bar bearish engulfing patterns of early May and March.
So, if past events influence future price movements, then most likely we might see further depreciation this week. After all, bears are in charge. They have been for the last 70 days or so. What we need to do is sync in with them and execute trades accordingly.
Breaking below the upper limit of our buy zone was Aug 4 bearish engulfing and high volume candlestick. Not only did we see conclusive breaks but there was a volume spike accompanying that lower low.
Now, as laid out in our last Bitcoin (BTC) analysis, we exited our longs with plans of purchasing anywhere between $6,800 and $7,200.
However, for now, my suggestion is to take a wait and see approach knowing that there is a clear double bar bear reversal pattern right at resistance in the weekly chart.
In our case, any break below $6,800 means bear trend resumption and I will recommend selling with stops at Aug 5 highs and first targets at $6,000 our main support line.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.