Price behavior analysis, short to intermediate-term trade set-ups. Find out what traders are doing in Bitcoin on the IG Client Sentiment page, and what it may mean about future price fluctuations. The other day we were discussing the possible change in character in price behavior across the cryptocurrency market.
If the ‘animal spirits’ have indeed been broken, another big leg lower could soon be in store. We are nearing a point in time which looks like it’s ‘hold or fold’ time for the group.
Last week’s plunge and reversals were extremely fierce, indicating a significant inflection point. The modest weakness we’ve seen in recent days could simply be a retest (a common occurrence at meaningful turning points), and if the case, then we should see the group firm up and turn up.
If a breakdown develops below those spike-low levels, then much lower levels could be seen in short order. Bitcoin (BTC/USD) is working its way back lower while in ‘retest’ mode at the moment, but will need to firm up soon as it has support in the current vicinity.
Yesterday, it was below the July trend-line, but managed to close above for a second day in a row. A close below the trend-line will quickly bring last Wednesday’s spike-low at 9222 into focus. Read more from dailyfx.com…
thumbnail courtesy of dailyfx.com