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RE: Why I'm Negative on Bitcoin

in #bitcoin7 years ago

BTC looks set to test the rising trendline support of $17,500 in the next 12 hours. However, the support might hold, since the dips below the upward sloping 10-day MA ($17,756) are likely to be short-lived. Furthermore, a pullback in alternative currencies could take the pressure off bitcoin.

However, a close (as per UTC) below $17,500 would add confirm the bearish hanging-man reversal and bearish RSI divergence. As history shows, bitcoin has suffered major corrections following confirmation of the bearish RSI divergence.

Hence, a close below $17,500 could potentially yield a decline to $13,500 (Dec. 12 low).

On the other hand, a move above the 5-day MA ($18,822) in the next few hours could put a return to $20,000 back on the table.

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Thanks for the TA. Not sure how relevant it is in a market dominated by this level of emotion (most indicators will say Bitcoin is overbought in many cases), but at the very least the support and resistance levels are watched by enough that it works through self-fulfilling prophecy.