Bitcoin overnight (US CST) trading broke down with high velocity, as a downside break finally occurred.
Downside protection kicked in to stop at a recommended 6520, saving even more losses from the carnage to those who follow Rogue Analysis.
Price action held the long-term bearish upper trend line well, with a hard bounce using it as support yesterday, however, failed to do so in the overnight session.
BTC downside broke this trend line in only one 4-hour candle and closed almost 300 points down. This downdraft included two key items, one of which is still active.
The next support level down at 6400 was broken before BTC made it’s way to 6250, a major pivotal area that has held the higher low for BTC in the longer term picture.
Now testing that same area, 6250 is the key level to watch. So far, BTC has maintained it well with a zero break (measured by candle open/close*). Additionally, a break of this level will likely follow with BTC seeking out the 5200 level which coincides with the bearish trend bottom side.
Stochastic mid-term now seeks the oversold region with added volatility while the daily scale is absolutely negative. MACD momentum remains negative and gives sell signals across the board.
BTC is currently a Sell/No Play (6520 was last stop point).
Futures Traders – trade the trend. The short-term trend is currently Short.