Are We In A Downtrend?
Updated
Hello everyone,
To get right into the action; we saw a breakdown from the 1200 EMA. As you can see from our previous post, we mentioned that a breakdown from that level could be the first step to the start of a new downtrend cycle.
We also have the dashed trend-line (in white) that failed to act as a support, and is currently breaking-down as we write this post. This trend-line has proved reactive in the past, and it's failure to hold BTC above $7,650 is significant.
Finally, we have the (blue) trend-line coupled with the 200 EMA (in yellow) in the same area. These 2 indicators are highly reactive and could present a strong support level.
The selling volume is increasing now and the chances of a reversal are slowly decreasing.
The MacD is also currently breaking below the 0 line, which is also another characteristic of our previous downtrend cycle. However, it has to hold under the 0 line for this to be true.
We must watch the levels below to see if it holds for a reversal, or for another breakdown below these levels. This will push BTC to the $6,xxx range, and possibly finding a new low under $5,700.
Please let us know if you have any questions! We're more than happy to have an open discussion.
Thank you for reading.
To get right into the action; we saw a breakdown from the 1200 EMA. As you can see from our previous post, we mentioned that a breakdown from that level could be the first step to the start of a new downtrend cycle.
We also have the dashed trend-line (in white) that failed to act as a support, and is currently breaking-down as we write this post. This trend-line has proved reactive in the past, and it's failure to hold BTC above $7,650 is significant.
Finally, we have the (blue) trend-line coupled with the 200 EMA (in yellow) in the same area. These 2 indicators are highly reactive and could present a strong support level.
The selling volume is increasing now and the chances of a reversal are slowly decreasing.
The MacD is also currently breaking below the 0 line, which is also another characteristic of our previous downtrend cycle. However, it has to hold under the 0 line for this to be true.
We must watch the levels below to see if it holds for a reversal, or for another breakdown below these levels. This will push BTC to the $6,xxx range, and possibly finding a new low under $5,700.
Please let us know if you have any questions! We're more than happy to have an open discussion.
Thank you for reading.
Note
It seems that the white dashed-trend-line has proved resistant for BTC up until now. This could indicate further downside movement to the blue trend-line and 200 EMA (in yellow).Note
Looks like we bounced off the 38.2% fib level, and are now testing the dashed trend-line for resistance. At this level, breaking above or below either side will dictate which direction BTC takes next. Give us a follow for more updates!
Note
We've broken the fib level, and are currently sitting on the blue trend-line, right below the 200 EMA (in yellow). If the selling volume persists, we could be looking at a breakdown from here as well.Note
As you can see from this chart, IF we break this level, we might see a steep drop to around $6,800. The volume profile shows us that we have little resistance/support activity going on between $7,2xx-$6,8xx. We can also see a sharp drop on (6/10) and a sharp rally on (7/17), which are what the next drop might look like if we were to follow the same pattern.
Note
It seems the blue trend-line has held supportive enough for a bounce! We'd have to see more buying volume from here on if we are to break above the $7,5xx-$7,3xx range.
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