Crypto land has taken a good beating this week…so far all major cryptocurrencies are strongly negative for the week, in some cases losing more than 15% just for this week.
Major technical break downs have occurred and traders using technical analysis would have been saved if they followed basic trading rules. But this is not the place to talk about trading strategies. Let’s look at BTC/USD. Major breakdown as price is breaking below a multi month support area.
If Bitcoin manages to close the week above 6000$ this could be a fake break down and a bullish sign for BTC/USD. On the contrary, as long as price stays below 6000$ things can get ugly in crypto land….remember the euphoria back in December of 2017 at 20k? now reverse that feeling and we could see the exact opposite. As long as price is below 6500$ trend will remain bearish.
Ripple on the other hand is not breaking below summer lows.
Ethereum is also holding above September lows.
Litecoin is making new lows inside a wedge pattern.
Is this the start of a new strong decline or just a capitulation phase before the next bullish trend starts? Technically we have no indication of a trend reversal to the upside. Trend remains bearish in most currencies against the Dollar. If everyone will follow the leader, then keep an eye on the 6,000-6,500$ level in Bitcoin. Only a break above this area could bring bulls back in control.
Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that June be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.