Bitcoin has had quite a generous run, and now it’s time to give back. Starting on March 12th, BTC started the climb from about 6800. It made a peak at 8400 yesterday, which gave a clear bounce that was to be expected. Along the way, there were a couple pennant patterns as well, and thus far, this is generally what an uptrend should look like.
Problematic for Bitcoin: The trend overall is down, not up.
Good for traders: Short-Term, there is still upside to play and volatility is kicking in daily once again.
BTC is playing with the major 8k support level again, which it is broken under at the moment. A hold of support at 8k would be optimal, but with the massive run up, an area like 7600 could be expected as a mid to long-term support area that will be tested today.
The tech specs on BTC are also bearish at the moment.
MACD is completely swinging down.The lines are wide and it is growing on the hourly scale(shown)
Stochastic readings have entered oversold territory, left, and now seeks that area again. Remember that stochastic extremes give BTC it’s most volatility.
Support and Resistance have played well since the run up, and stand firmly at 6800/7200/7600/8k
Watch for support to be made and held in one of the upper areas. The hourly break below 7600 will keep BTC in bearish mode to seek lows.
Rogue* Wave Analysis shows that the previous leg up, marked by the white line, amount to 1600 points. Pivot areas to allow BTC to seek 8800-9k will have to see support stand at 7850 first stop, and second stop would be the 7600 area.
Bitcoin is currently a WATCH for support.
Futures Traders-Trade the Short-Term Trend: Look for short opportunities.