Big red candles cause successive red candles

2018年9月5日

BTC took a sharp turn down as it broke down out of the rising wedge on the 2h chart. I was looking for BTC to move up to 7550 to meet the 10 month long diagonal resistance however BTC gave up before then. It broke through the 50D MA and is currently sitting on the 100D MA. As you can see, on the daily chart we have a big red candle (in my case black candle). Generally, this causes successive red (black) candles. There is support at 6.8k (green line) and we are currently resting on the 100D MA. For BTC to continue moving up, we would need to cause this daily candle to become a wick, which I think is quite unlikely. The RSI on the 2h/4h chart is below 30, so I expect some kind of bounce, however I am expecting BTC to move down to 6000 unless we get back above the 50D MA by TODAY.