Since we broke the 7000$ barrier Bitcoin is in a pretty tight range, althought it had some wild price action around 6450$ and 7250$. Overall it is in the 6800 - 7100$ range and this consolidation was expected. We are way below the moving averages, especially the long-term ones. After the death cross oficially happened (The 50-day MA crossing the 200-MA) we are kind of in the waiting game.
As you can see from the chart above the 6800$ support is holding pretty well for now. Also a catch-up game to the moving averages can be expected as BTC is way below all of them. Usually when something is very extended from the MA's it tends to catch up with them sooner or later. For example the 200 SMA is at 9393 and the 21-day EMA is 8042$ which is over 1000$ above. We are in the middle of chart and a possible scenario is a short-term rally and then they might hammer it again.
It is important to note that the global markets have sold off very sharply once again today and the Dow Jones broke the 200-day and closed below it. I don't know if this will affect the crypto market, but in general high-risk assets get punished when there is fear. At the moment I think there certainly is fear in the markets with the trade war and all the tariffs.
What's Next
- If we close below 6800$, we might test the previous low at 6000$
- If we break above 7250$ and hold, we might test the 8-day EMA at 7305$
What are your thoughts for the general market ? Let us know in the comments :)
