Bitcoin Technical Analysis
I hate to be that person, but I told you so! [Look at my posts from last week]. This was likely, very likely to happen and I hate to blow my own trumpet, but the values at where it dropped from and to were not far off either. OK, enough of slapping myself on the back and congratulating good old me. The sad fact, is that there is a strong chance that some people really lost a lot of money. What a difference a few days and the disappointment of not receiving x2 the amount of Bitcoin for your investment because of the cancellation of the Hardfork. Furthermore, the pressure on the bull run and almost bubble that Bitcoin was in, there was no way, unless there was considerable reward - which was unlikely. Would Bitcoin be able to maintain such strong bullish moves.
Once again, we are seeing fear and greed play in the charts. The greed was there, and it got to fever pitch, as all good bubbles do. Unfortunately, most traders don't care too much about bubbles providing they are on the right side of them; long or short! So here we are once again, hitting amazing lows at the points I did mention, and I hate to be that person, but I did say.
So where are we? Well we got a bounce from an almighty fall. Bounces are always very likely, but tend to never recover to previous highs. If you look at the Fibonacci, you will notice the red line that was a support in the consolidation range from last week. This now is a point of resistance, strong resistance @ 6920, it could reach that and draw down @ 6600 or @ 6400. There is some pressure in the Stochastic, and the RSI, is almost at a point where the retrace happened previously.
** DISCLAIMER ** The information provided is my own analysis and should not be taken and is not given as any form of financial or trading advice. Any trade, investment or decision based from this information provided to you, is as is and I cannot be held responsible for any decisions you make from this information. DO NOT RISK what you cannot afford to lose. Trades can result in losses that are more than your initial stake. Seek proper training and paper trade before you use real money. Should you be interested in Technical Analysis, please look at my other articles on them.