Bitcoin overnight (US CST) trading sees the continuation of the downtrend as pattern lows seek the Rogue* projected zone given yesterday.
This area sits in the 6250 region. As shown on the mid-scale, the fallout began from the flat bottom pennant break. The 6400 support level was completely broken and briefly given a soft test as resistance already. This being the case, the downward projection has been the 6250 region.
6250 has been a major pivot area for BTC for the past few months and has ultimately maintained a higher low* on the larger scale. The long-term downtrend suffered in the 2018 year has maintained course, however, the break above the long-term bearish upper trend line has seen quick highs that saw a volatile 7800 briefly snap back to mid 6k levels.
Now testing the 6250 level, BTC must hold this for longer term bullish confirmation or else risk potentially re-testing the long-term bearish trend line which stands at roughly 6170 today.
Given that BTC has now taken back more than 1/2 of the previous leg up during the currently retrace, the downtrend remains active until pivot support area is found and confirmed.
This remains 6250 at the moment, however, may end up being the bearish trend line if the price cannot hold. A break of this pivot area and higher low overall will seek overall major support at 6k next – a bad sign for holders.
Stochastic readings mid-scale remain in oversold(<80) territory and bring volatility as this region generally does on the larger scales.
MACD momentum once again ticks negatively issuing a sell signal for holders and showing that support re-test attempts are to be expected.
BTC is currently a No Play.
Futures Traders – trade the trend. The short-term trend is currently short.