I last posted about Bitcoin one week ago,
Crypto Analysis Report 5-17-18 BITCOIN...Price Hovering Above A Demand Zone At $7900
I mentioned $7900 level served as the last defense. However the level was breached and price has slowly been drifting lower.
It's important at times to zoom out and look at the Bigger Picture. Price is closer to weekly demand vs weekly supply.
Now lets zoom in a bit.
Price is currently sitting right smack in the middle of daily supply and daily demand. The trend is down currently. If you are considering going long, wait until price drifts down a bit lower to the daily demand level at $6850. This will allow you to optimize your risk to reward ratio.
Price has also formed three doji daily candles. A doji candle is created when the open and close are virtually the same. Doji candles tend to look like a cross or plus sign and have small or nonexistent bodies. Doji candles can often be found at tops and bottoms and signify a reversal. Thus, if you are a break out trader and bullish, buy on the breakout above the high of the first doji candle.
PS - there are a lot of people out there that think Bitcoin is heading a lot lower....like below $6000. However, in the past I have talked about the $6000 being key and strong level, so I don't see price getting below $6000 without a tremendous fight from the Bull.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.