BTC Price Analysis: Screw Your Long
Disclaimer: This article is not financial advice. The author is not a financial advisor and this article was not paid for.
Bitcoin Price Analysis
So, there’s been a substantial amount of price action since we last covered Bitcoin.
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It’s pretty clear from the chart above that the market made their decision definitively.
If you remember from the last price analysis that we did, we mentioned that $6.8k-$7.2k would be the zone that would lock in the price of Bitcoin until there was a strong movement in either direction.
In the author’s estimation, they surmised that the price would actually bounce upward, however, the author was wrong on this account and it appears that the price has broken down south of the $6.8k mark.
This was another major resistance/support point for the price of $BTC in the past.
Let’s Zoom Out to the 1D Charts
Looks like the RSI(14) has dropped straight down to the oversold category from overbought without one hitch or fork.
This is what you would expect to see after a classic dump.
Which should lead one to the understanding that Bitcoin was pump and dumped.
Doesn’t get much more blatant than that.
What you’re observing above is not the natural progression of RSI.
This is manipulation at the highest level and something that traders should be distinctly aware of.
“I thought we were going long??”
It’s your responsibility to hedge. This possibility that the price would either move up or down was discussed thoroughly in the last analysis.
Make sure that you always have a “backup plan”.
The only thing left to do at this point is to simply watch the price and remain short if one is already short.
If you can catch a short off of the break in price, then one should do so. However, if you are not able to do so, then perhaps it would be best to refrain from trading until the price has bottomed out.
It appears as though there is definitely still room for southward price movement by Bitcoin.
We did experience a bounce as predicted earlier, however, the bounce was slow and minimal at best.
August may be a very long month for Bitcoin holders.