Bitcoin continues its path lower as overnight (US CST) trading sets to test the bounds of the downtrend overall. This may take up to 48 hours, but the path test pivot areas is a clear-cut directive at this point.
As BTC broke support levels lower than the 6k region, 5600 support was next – which on the mid-scale gave rejection so far. Now trading at about 6700, price action gets ready to be challenged by the MA(moving average) line.
This line is a tool that currently may give BTC considerable resistance. Therefore, for those looking to re-enter, there should be increased caution as the trend is still down and there is no confirmation of bottoming yet. It is likely that BTC will test support once again before any continuation to the upside.
However, the challenge even in that case will remain the long-term bearish upper trend line(orange line). This line now stands to be the 1/2 retracement point – also a bad sign considering it must be held firmly short term as support in some way to continue upward.
Stochastic readings are oversold mid-term, but keep in mind that daily momentum isn’t so and by looking at MACD levels, complete sell signals remain across the board until positive traction begins course along with supports holding.
BTC is currently a No Play overnight(or the next 12-18 hours)
Futures Traders – trade the trend. The short-term trend is currently short.