This was a pretty eventful day for Bitcoin, we set a new ATH at $11400 and then fell back to $9250 and closed the day at $9820.
So, what caused this drop? What happened was that several exchanges such as Coinbase stopped functioning and it was impossible to access Coinbase for quite some time. You can read the news from coindesk here:
https://www.coindesk.com/bitcoin-price-falls-1000-minutes-erase-24-hour-gains/
Now, lets have a look at the charts. Here is the daily chart:
Comment: What we can see from the daily chart is that we formed a negative reversal candlestick, a doji-sign/hanging man. This usually indicates that the party is over for the near term and that we would have to go back to old support levels.
So, where are these support levels? The closest support is down at 7500 at the black horizontal line. Therefore, be prepared for a couple of down weeks from here on until we reach support.
But could I be wrong in this analysis? Of course, we could head higher some more, but we will still have to go back to some support level later on, so why not go there right now and get it over with!
Lets finish up with a look at the weekly chart:
Comment: If we will close the week with a hanging man or similar, we will still have to wait 4 more days until that happens, but lets assume it does, then we do have 2 different lower ascending trendlines to look at. The first one would indicate that we might go down to perhaps 7000 and the lower one does indicate a more serious decline down to about 5000.
So, there you have it, it looks like we might go down from here but I still think we will end this year on a good note around $10000. 2-3 weeks down and then a rally at the end of the year.
Happy investing!
