Bitcoin Permabulls Are Not TradersAfter taking a very steep dive to the depths of $3.9K, Bitcoin damn near immediately started to retrace in aggressive fashion and while doing so, formed an obvious ascending wedge. Basic TA tells us, a downtrend followed by an ascending wedge is quite bearish. Add this to the fact that sellers were waiting nearby to jump on the overpriced value.
In my mind, many HODLers were intially late to sell at $10.5. The retrace here to $7K is there last attempt to salvage a portion of the losses they may have accrued since the downturn. On the other hand, Permabulls being permabulls were continually attempting to push price up above $7300.
At this point, its safe to speculate that a portion of Bulls are now bears or have simply hedged their positions. The lowest level of support I could find for BTC was at $216. There's a stronger support level at $1617 however. Look for a bottom out somewhere in this range.
The fact that we've recent hit $3.9 and failed for 48 hours straight to secure bullish territory (above @ $7300) means that we need a lower base support level. Where is it, is the million dollar question. I'm gonna vote for somewhere between $216 and $1617. I can't say precisely but, SHORT THE SHIT!
