If you read last Fridays post titled "Bitcoin is about to FALL again," you would have known that I was looking for a trade opportunity to short the hell outta Bitcoin over the weekend.
As expected, Bitcoin fell 4% and is now sitting at $7,200.
Refer to last weeks Bitcoin chart below.
You may recall that I mentioned the short term correction to the upside did not look convincing at all and that the writing was on the wall for another steep sell-off. This was evident by the number of candles it took for price to rise from $7,450 to $7,650 in comparison to the long red candles either side.
This was the first clue that a sell-off was looming on the weekend despite a number of call's on social media that Bitcoin has reached a temporary bottom...
You will also note in last week's Bitcoin analysis I drew a pennant pattern which was forming with price consolidating between the two converging trend lines. This pattern had only completed on Saturday with a tight squeeze between $7,481 and $7,616 as shown below.
The criteria for the break out pattern was now complete with a safe area to place a stop loss and projected take profit target.
As you can see, price perfectly touched the projected take profit zone.
From here, I would expect further profit taking to take place and will probably see a small correction to the upside. There is still significant downside risk so do NOT even think of making a counter-trend trade for a quick profit.
As there is no viable break-out pattern, it's now time to sit on my hands and write another STEEMIT post :)
