BTC STEEM BTS all breaking down through support levels...What's Next???
Beloved Bitcoin has broken through trendline support with force on elevated volume. This price action has also invalidated the falling wedge pattern and could signal a shift in market sentiment. However, BTC bounced off of longer term trendline support (bolded fushia dotted line) keeping hope alive.
As a stock and futures trader, I've seen a fair share of 'fakeouts', of false breakouts or breakdowns. In these situations, price action invalidates trading patterns, only to quickly trade back within the pattern in the next few days. These 'fakeouts' are usually characterized by high trading volume and high volatility and in the case of BTC could be interpreted as capitulation. Today is shaping up to be a high volume trading day in BTC already surpassing yesterday's trading volume. Let's see if bulls will defend the longer term trendline or whether bears will drive prices lower. For the sake of the crypto world, which seems to be following the sentiment of BTC, let's hope the former happens...
STEEM has invalidated both trendlines by convincingly closing below the wick trendline right around $3.20. Once a technical level is invalidated, one must seek out to see what price action will do next. This morning price traded and tested the lower bound of PWSH and bounced higher from there, another great example of PWSH providing support. With the trendlines invalidated, it looks liek STEEM is consolidating in a large descending wedge.
Until price dictates otherwise, I expect STEEM to trade range bound within the wedge pattern.
Yesterday, Bitshares sliced through trendline support and closed at 20c. Today, Bitshares traded down to 15c, which is an important psychological level as there has been a lot of previous price action that has traded at that price. Like STEEM, BTS is starting to forming a descending bullish wedge pattern, but at a much steeper angle. We'll see if the lower bounds of this pattern holds and will be looking for a bullish breakout from this pattern.
Great call - looks like BTS and STEEM have made nice recoveries after touching upon some psychological and technical bottoms. Onward and upward!
Thanks! We're still not out of the woods yet, I'd be much more confident if we broke out of these patterns. Hoping the intermediate low is in...
1,000 and then a huge rebound?
BTC $1000 before a bounce? That might be a bit aggressive, I don't Bitcoin goes that low. I'm hoping the lows this morning are intermediate lows.
We get small bounces every day it seems. If GBTC does well again tomorrow than this could be the bottom.
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