Important Update on The Bitcoin Carnage! (BTC)

I don't normally cover a single coin more than once in a day, but when I do, you know it's probably F'ed. There are some very important things to point out with Bitcoin. First of all, you can see that it has now surpassed our most critical support levels, including the rising green trendline, and even the top of the downtrend channel (in pink) The top of the channel was pierced, but BTC has recovered slightly since piercing the channel. If that isn't bearish enough, you can see the tremendous sell-side volume that has skyrocketed on the chart. Each time we had huge initial red volume spikes like this, BTC continued to decline. That happened on 12/7, 12/20, 1/16, and 2/4. The difference now though, is that the volume spike is extraordinarily higher than average. With that said, I am most concerned with the fact that the top of the downtrend channel was pierced. Thus weakens it as a support level, so if BTC finds it's way down to the top of the channel, it could easily be broken. Mark my words — if BTC gets back into the downtrend channel, we could see some vicious selling in this market. I'm not trying to spread fear. I'm just showing you the very real danger that is emerging in the market right now. Keep in mind that the current candle has not closed. A close above the green trendline, would be better than a close below. However, it is likely that we will see more downside, after such an enormous surge in sell side volume, momentum, and price action. On the MACD, you can see that there is a lot more downside potential, for it to fall until it reaches the rising green dotted trendline. BTC is way beyond the Bollinger bands, on the current move, so a pause could materialize. This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-Magic loves you-

MagicPoopCannon

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