Bitcoin Wanders Through The Wilderness; Continued Weak ‘Fake-Out’ Moves

Bitcoin continues to struggle as it meets the 7800 resistance mark and begins to fall back once again. The 4-hour scale shows a perfect timeline of how the attempted retrace has thus far only broken the tip of 7800 and the attempt to hold it as support was of no use – almost immediately. This shows that the downdraft still has more juice left and that what could have been considered a “retrace trade” or “buying the dip” at that very time was essentially a fake-out. We have alerted our readers about this before, and this a prime example.

Looking at stochastic first, you can see the pivot to seek out overbought (>80) levels once again has not brought a matching price boost along with it. The range for this period was 6763-6873, a shockingly small 110 point move on a 4-hour scale.
MACD readings are even more eye-popping. Consider that MACD gave a huge upside swing that period in addition to potentially crossing. 110 points are very little response from the market. The short-term hourly and long-term daily chart MACD readings are also bearish, along with stochastic readings.
In this environment, again, Risk Management is a must. This includes capital conservation. The exit strategy(going back to our last buy/sell/hold) was to have downside protection(stop loss) at 7360 – a far cry from where BTC stands today. Do not enter the market until, at the very least, short-term trend confirmation is up.
BTC is currently a No Play – desperately needs support.
Futures Traders- trade the trend. The short-term trend is currently