Bears (Still!) in Control
Updated
I have been posting about the BTC bears for some time now, and my opinion is still the same; the Bears have strong control. As you can see the RSI is moving into oversold territory after the recent drop from $7,400 to $7,300.
However, their domination could soon find a short term end, as BTC is dropping close to long term support of 7,000 USD. I couldn't imagine this level being broken, and even it is, the price (should) work its way back above the 7,000 USD threshold.
While these times make you seriously re-consider BTC, this is simply a bear market; right now they are certainly calling the shots. Increased volumes (with the beginning of the week) could increase volatility and possibly take us into a neutral market, but it is impossible to say for certain.
We can only hope that BTC finds its strong support at 7,000 USD again; this would be very good news for the space as a whole.
But as of now, just like the past weeks, the Bears are in control.
However, their domination could soon find a short term end, as BTC is dropping close to long term support of 7,000 USD. I couldn't imagine this level being broken, and even it is, the price (should) work its way back above the 7,000 USD threshold.
While these times make you seriously re-consider BTC, this is simply a bear market; right now they are certainly calling the shots. Increased volumes (with the beginning of the week) could increase volatility and possibly take us into a neutral market, but it is impossible to say for certain.
We can only hope that BTC finds its strong support at 7,000 USD again; this would be very good news for the space as a whole.
But as of now, just like the past weeks, the Bears are in control.
Note
At the time of writing, BTC has dropped, as expected, but the nature of the drop was one that we were not quite expecting. The $7,000 level of support has now failed, as BTC is hovering around the $6760 area. This represents what I think is a overstep by the Bears, and depending on technical analysis over the next few days you could easily see a great buying opportunity.
While the Bears still remain in control, the lower than BTC drops the more buying pressure the Bulls will exert until this bearish pressure is finally exhausted.
When this happens, there should be an opportunity for a short term trade with the ability to take profits and then await further market action to decide what plans are best.
Times like these also make us recognize how fundamentally new this space is. I enjoy working in a day trading simulator, and it is truly a game change to be able to make money through long and short positions. Instead of focusing on how much BTC exchanges can make, maybe they should start offering a better value product, thus creating more demand in this space.
Note
Bears are being brutal to say the least. There was a slight uptick on the 1H chart that was quickly stopped by bearish pressure yet again. Now showing two hard red candles on the four hour chart. RSI is still oversold, but this is not looking good as a whole. Bulls were trying to stake a stand around $6,800 range but were immediately rebuffed.
Still looking for that turn around of the 4H chart to justify a trade here.
Note
While we are getting to the point of a possible trade, this still shows more downside risk than reward. I don't think we will see any more movement down, but I also don't see a strong response from the bulls, either.
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