The collapse at the beginning of the working week may be since hedge funds on CME have $50 mln in short positions for Bitcoin. Quite enough to strengthen the adverse reaction of the market, already affected by the actions of the Chinese authorities. In addition, the situation with the “miners’ exodus” also helped to form a “perfect storm”.
The downward momentum is occurring after a drab weekend that saw little to not upside action. Bitcoin, however, continuously returned against key resistance levels including $7,400 and $7,200.
The existing trend is bearish while the volatility is high. Bearish presence is apparent especially with the 50-day SMA crossing under the 100-day SMA on 10th Nov. Now the price testing the 50% Fibo at $7,275 of the last swing low at $6,618 to a swing high of $7,933.4. If we see sustainable move bellow it, the next bearish target is $7,200/120 area where is 61.8% Fibo retracement.
On opposite side, the first resistance is reinforced by the 50-day SMA on 4-hour chart around $7,400. Once it is broken, the $7,900 - 8,000 area will come into focus, where is located the middle line of H4 Bollinger Bands.
Take in mind also, that this month is special because, in the past, it has been the turn-around for long term down trending crypto markets.
What is your positioning?
The downward momentum is occurring after a drab weekend that saw little to not upside action. Bitcoin, however, continuously returned against key resistance levels including $7,400 and $7,200.
The existing trend is bearish while the volatility is high. Bearish presence is apparent especially with the 50-day SMA crossing under the 100-day SMA on 10th Nov. Now the price testing the 50% Fibo at $7,275 of the last swing low at $6,618 to a swing high of $7,933.4. If we see sustainable move bellow it, the next bearish target is $7,200/120 area where is 61.8% Fibo retracement.
On opposite side, the first resistance is reinforced by the 50-day SMA on 4-hour chart around $7,400. Once it is broken, the $7,900 - 8,000 area will come into focus, where is located the middle line of H4 Bollinger Bands.
Take in mind also, that this month is special because, in the past, it has been the turn-around for long term down trending crypto markets.
What is your positioning?
Trading ditutup secara manual:
The Sell position was closed manually at $ 7,132 just above the TP
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💰 PAID SIGNALS AND ANALYSIS: t.me/Semkov
💡 If you want to know on what basis we make our entries, get in here: t.me/trendlinefreetrade