BTC Drops $3K - again
Like history repeating itself all over again. Everyday is another dump day for Bitcoin or at least a weak bull day to say the least. Our biggest candles since Mid November have all been Red. Yesterday we saw another selloff after Bitcoin was rejected on the back test of the Support trendline.
With an opening price of $50,844 and a closing price of $47,568 we can say that Bitcoin dropped 5.84%.
Things brings the Monthly loss to 27.36% for Bitcoin but an overall 31.42% from the ATH.
What is interesting is that $47K was held but only just barely. Why this is interesting is because 4 days ago, $47K was tested and held before bouncing up to attempt the back test of the trend. This secondary touch of $47K again adds a little bit of life for the Bulls. Holding this level is no easy task when all of the momentum is to the downside.
Filling the wick is still in the cards
We spoke about wick filling a few days ago and it is still very much in the cards as far as the price action is concerned. Bitcoin has a funny way of stringing along traders and making them think one thing only to crush them a minute later. That is why we look at price action as opposed to the emotional nonsense on Twitter or YouTube.
The facts are this:
We broke the local Daily Uptrend
We are clearly trending down since the ATH
We have broken key levels of support
But again, it’s not all doom and gloom. One bullish candle from Bitcoin and the whole market comes back to life. That is the way this market works. For now, watch the trendline on the local side and if we cross that, we can look for a pulse. Until then, we look for levels that hold and levels that break.
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