BTCUSD has broken through key support level of $9,000 and consolidation zone. This signals a reversal in momentum in the short term and can expect further downside.
After recovering from multi-month lows, we can assume for now this pull back is a result of profit taking. The question now is: "How far will Bitcoin pullback?"
The next consolidation zone is near the $8,200 level which coincides with the 50% Fibonacci retracement level that could offer support.
A break of this zone would expose further lows towards the $7,000 level that coincides with the next consolidation zone and the 76% Fibonacci retracement level. Should price get this far down, it would be a great opportunity to get long, but based on the slow nature of the sell off so far, it seems this is merely a correction only and the medium term outlook is still bullish.
While there is an opportunity to possibly short BTCUSD, for me, there is no high probability trade set up with a favorable R/R ratio. Preserve your capital and get the popcorn out.
Enjoy.
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
After recovering from multi-month lows, we can assume for now this pull back is a result of profit taking. The question now is: "How far will Bitcoin pullback?"
The next consolidation zone is near the $8,200 level which coincides with the 50% Fibonacci retracement level that could offer support.
A break of this zone would expose further lows towards the $7,000 level that coincides with the next consolidation zone and the 76% Fibonacci retracement level. Should price get this far down, it would be a great opportunity to get long, but based on the slow nature of the sell off so far, it seems this is merely a correction only and the medium term outlook is still bullish.
While there is an opportunity to possibly short BTCUSD, for me, there is no high probability trade set up with a favorable R/R ratio. Preserve your capital and get the popcorn out.
Enjoy.
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
