Bitcoin Looks Weak...

8 thg 6, 2021

Bitcoin is starting to show signs of weakness again, and could experience some more extreme short-term turbulence. The wedge pattern seen indicated a relative balance between buyers and sellers with both volatility and volume squeezing towards the end of the pattern. Patterns like these usually indicate a large move is on the horizon, but the direction is unknown until further data develops. Once BTC broke the wedge to the downside, it began consolidating under the pattern, a very bearish signal (previous support becomes resistance). A big drop in price was experienced shortly after. I moved all my crypto positions to cash to wait out the storm and I will be attempting to short BTC in the Futures market around 36k if the market retraces to that level, since 4 hour RSI will become oversold soon. I expect BTC to retest the recent 30k low, which will likely decide the short-term fate for the entire crypto market. If BTC breaks the 30k low, (and more accurately the 28k area of demand low) I expect a rather violent sell-off down to the previous 20k all-time high/breakout level, which is where I would reconsolidate my position. Godspeed and good luck!