BTC drops 3K in a day

Sellers maintain control

Bitcoin Sellers – those who aim to bring the price of Bitcoin down – have been in control since November 10th.  They had a nice easy ride from $69K down to $47K but started getting tested in the $47K Zone and struggled to maintain momentum.  Despite many attempts to close below $45K, the Bulls have defended the area well.

For about four days it looked as if the Bears were getting exhausted.  The Bulls had a four day move from a low of $46,645 to a high of $51,878.  That was a rise of $5233.  Not to be outdone by their nemesis, the Bears awoke from their slumber and in less then three days they took price from a high of $52,100 down to a current low of $46,596 – a drop of $5503.  

The Falling Wedge that we mapped out came extremely close to hitting target.  Just ever so slightly out of reach for the Bulls.  This is when reading the price action can help you shift targets or exit trades.  Even with the 3K dump candle, the entry is still in profit but it’s a long way to go to get back to the top.  

When we can clarify the Top Resistance and the Lower Support, then we can get a better idea of just how sideways Bitcoin is at the moment.  

There are a few things to say about sideways consolidation:

1: The Market is neither up or down

2: Sideways can lead to reversals just as often as they can lead to continuations of prior trends

3: Alts tend to take advantage of the Sleeping Giant

At this moment we are not clearly trending Down anymore, unless we zoom out a bit more.  We are also not clearly trending up – at least on the local side of things.  The larger, more zoomed out view is still clearly trending upward.

 

—At this point, we wait for some clear direction – for Bitcoin.  The entire market is down at the moment and after a 3K dump candle, this will happen but when the market settles down a bit and Alts regain some footing, there is a chance we see some explosive moves from some Alts and that is where the focus needs to be.

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