Bitcoin - Death Cross Update - Must Read!This death cross was a bit unconventional in that whales/exchanges used the fact that a lot of their customers were counting on the death cross taking price down immediately after the crossover. What did the exchanges do? Closed them out by generating two massive green candles and took their money without any shame. Leverage trading is made up of two camps; The incredibly naive and the extremely knowledgeable, in this scenario you are betting against the casino while the casino makes the rules. It is unfair how those that short think that they have a fighting chance. The crazy thing is that the evidence of the strength the other side has, was left on the chart -- Those two massive green spikes left on the daily chart will be a reminder -- and still, inexperienced traders believe they can make a fortune shorting BTC. I hope I was clear here explaining how against you the odds are when it comes to shorting.
Below is a closer view of the battle zone.
So what is happening now?
The gravity of the death cross may be the cause for BTC falling under the support line and not being able to recover, now what was once support becomes resistance.
What can we read from the main chart right now? That BTC had no volume so it fell under support and that it was too weak to get back up and over. It has now closed 3 candles under resistance (which is critical) and about to close candle #4 later today. The more we close under the 50MA and the resistance line the more likely we are to go down to the support levels that are immediately under. The fact that we have closed under the 50MA on the daily now opens up the possibility to go to the 7K area once again, as always don't expect things to happen on your timeframe, BTC moves when it is pushed around by bigger players, sit tight and let this mess sort itself out. Eventually, price will get to a good entry point and we'll be there with cash on hand.
So is the current behavior normal for life under a death cross? Aside from the massive spike right at the crossover, BTC is acting as it should. We tested the 200MA and got rejected, we are testing the 50MA and getting rejected. When this happens and if BTC follows normal behavior we'll see a drop that may reach the 7K area or lower, but this is not guaranteed, it simply is something we need to be ready for.
Below you can see the long term chart which has good entry points.
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NOW, THE LEGEND;
Support trendlines are green
Resistance trendlines are Red
Horizontal support lines are white, the thicker the stronger the support
50 Moving Average is yellow
200 Moving Average is white
THE TREND: Going Down, we have not made a new higher high
THE OUTLOOK: Expected to go down, unexpected if it goes up.
