I don't normally cover a single coin more than once in a day, but when I do, you know it's probably F'ed. There are some very important things to point out with Bitcoin. First of all, you can see that it has now surpassed our most critical support levels, including the rising green trendline, and even the top of the downtrend channel (in pink) The top of the channel was pierced, but BTC has recovered slightly since piercing the channel. If that isn't bearish enough, you can see the tremendous sell-side volume that has skyrocketed on the chart. Each time we had huge initial red volume spikes like this, BTC continued to decline. That happened on 12/7, 12/20, 1/16, and 2/4. The difference now though, is that the volume spike is extraordinarily higher than average. With that said, I am most concerned with the fact that the top of the downtrend channel was pierced. Thus weakens it as a support level, so if BTC finds it's way down to the top of the channel, it could easily be broken. Mark my words — if BTC gets back into the downtrend channel, we could see some vicious selling in this market. I'm not trying to spread fear. I'm just showing you the very real danger that is emerging in the market right now. Keep in mind that the current candle has not closed. A close above the green trendline, would be better than a close below. However, it is likely that we will see more downside, after such an enormous surge in sell side volume, momentum, and price action. On the MACD, you can see that there is a lot more downside potential, for it to fall until it reaches the rising green dotted trendline. BTC is way beyond the Bollinger bands, on the current move, so a pause could materialize. This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
I know you don't focus on fundamentals but it seems pretty clear this was panic selling due to the Binance hack. How do you feel this factors in?
Vermillionz
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@Mungee, lol my gawd, go spread FUD somewhere else.... SEC statements had all to do with this, the so called "binance hack" is such phoney news.
Giovi6969
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@Vermillionz,
Binance was hacked, what's wrong by saying it? Almost every exchange platform was hacked. Saying the truth is not spreading fud.
Vermillionz
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@Giorgioversace, You make it seem like Binance was hacked and funds compromised, when the only rumor is that a trading bot was compromised.. The way you say it just signals FUD to everyone. Plus this binance hack is still only a rumor.
Mungee
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@Vermillionz, It wasn't my intention to spread FUD. I also wasn't aware of the SEC statement. I was inquiring about the effects of an 'artificial' sell-off. If such a thing exists. I'm new to this and trying to get up to speed as fast as I can. I'm truly glad that someone like MPC is willing to devote his time to perfect strangers.
Ok ok, Binance Api keys were irregularly modified by some random intruders that might lost themselves on the internet and arrived inside Binance system by mistake, they were probably just searching for their lost e-mail adress.
As Binance is saying, it was "irregular trades", so you are right. I am sorry for spreading fud.
Vermillionz
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@Giorgioversace, hahaha fair enough. My main point hat SEC and Japan FUD made way more of an impact.
Giovi6969
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@Vermillionz,
Yes that is certain. Btc just had a synchronized fud cocktail anyway lol. A good mix of bad news in the same time.
Probabilities... Some people are even winning Lottery... lol.
Vermillionz
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@Giorgioversace, So you remain bullish?
Giovi6969
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@Vermillionz,
I was having some slight bullish hopes as Btc can be surprising, but the double top that Btc just formed was much worse than expected, now i am bearish and i am ready to see a capitulation sell off happening not that far away.
i might be completely wrong though, as Btc bubbles can be very particular.