Hi guys, quick update on bitcoin here. This is the BTC USDT one hour candles from bittrex.
We ended up crashing all the way down for a 100% correction on the last wave. This means that the price bounced at $3850 exactly at the same level where the previous crash was, so we made a same level low. This is very significant because it indicates that we are running out of bulls, that's why we can't make a higher low. This leaves the door open for a head and shoulders to form if we now can't make a higher high, which would signal even further that bulls are exhausted & sellers are coming into play. Again, we have to fight to break that $4120 level & actually stay above it, otherwise we're going under...
As I always say, you don't make decisions based in one single indicator, that would be 50-50, but also the volume indicator in the weekly chart shows how volume is drying up which signals the same thing: no more buyers & sellers coming. Having these two indicators in consideration, I think the probability of a serious trend reversal down to $3k are 60-40. Still, 60% is not a big percentage, but something to be watching if you hold large amounts of Bitcoin.
Happy trading xx