Hi traders, let's talk about Bitcoin.
Bitcoin.
- As we predicted a couple days ago, Bitcoin is continuing its break down inside a massive bearish descending triangle:
... due to a lack of new liquidity in the market as shown in the continuously decreasing weekly volume:
- On the smaller time frame, we just broke the immediate trend-line:
... which prompts me to believe we'll soon be exiting the current price node to go retest the previous price node ($7200/$6400)
- If we get there and provided there is no major influx of new money in the space, my guess is that previous support won't hold and we're going to break down below this descending triangle:
... and zip right down to this very thin value node ($5700/$5500) where we are going to find temporary support before we break below down to the much stronger value node at around $4500:
... notice the huge volume wells between each nodes, these zones of low volume won't offer any resistance for the price because there is no auction happening there (i.e. nobody is interested in buying at these prices):
If the scenario I just described plays out, I believe $4500 is where we're going to find very strong price support and where Bitcoin is going to hit a period of accumulation. Leading up to this I predict that most altcoins are going to take a huge hit that's why I have locked in profit on my ZCash trade from last month in order to prepare for the next market cycle.
On that note, I was quite wrong to assume that Consensus would allow the market to bounce to $9300 before we would break down lower. It now seems to me that the hype around Consensus is not necessarily going to produce this huge influx of new money that is needed to support current price valuations in the market.
Finally, I am also keeping an eye on EOS because it could make for a very descent quick bounce play if it does break down to $8-$9 USD and also because it has a catalyst event with the launch of its platform which could prompt the market to pump it once last time before the tokens are locked away.
Trade safe!
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