Bitcoin falters as major support levels are broken over the weekend. Two weeks saw BTC continue the uptrend with higher highs and higher lows and additionally saw price levels hold support at 7200 and 7600. In all the action, the mid-scale pennant shown was formed and as it drew to a point, BTC continued to sustain support at 7600 this last week. However, as you can see, things have not workout out.
https://theicojournal.com/wp-content/uploads/Screen-Shot-2018-06-10-at-2.06.02-PM.png 643 1175 Rogue Trader /wp-content/uploads/logo-header.png Rogue Trader2018-06-10 21:31:322018-06-10 21:31:32Bitcoin Dives And Technicals Dive With It; Support Looks To Be 6,400
As our downside protection alert has been at 7360 for over five days now, there should be no further sustained losses. This protection shows the true power of managing risk so as not to be caught in volatile swings that cryptos generally offer. BTC now looks to find support once again as the pattern breakout to the downside has seen price level hit 6630. Keep in mind that the next support level down is actually 6400.
So far, BTC has yet to show a proper retrace as well. The 4-hour scale shows consistent downfall as the selloff continues with no stoppage currently. This candle close at or below current levels will also be one of the biggest red candles formed since early 2018. Not good for the bulls.
Looking at the tech specs, stochastic readings are in the oversold (<20) “volatile danger zone” where price action moves well, although to the downside at the moment. Considering BTC has now registered a lower low as well, the downtrend is still fully intact going into the new week.
MACD readings are also falling off negatively and continue to grow. This indicates continued bearish momentum, so look for readings here to slow along with support to be solidified.
BTC is currently a No Play.