Bitcoin has been on a downtrend for the past 10 months.
Ever since it hit the historical high around 20000, it has lost roughly 70% of its value since.
Most retail traders have bought in above 15000, and alot of them are still holding onto it, hoping for a rebound.
The strongest support level has been around 6000 for the whole of 2018.
The channel upper boundary has successfully stopped Bitcoin from rebounding for the whole of 2018.
With that being said, as long as bitcoin does not form a higher low and higher high in 2018, the downtrend continues.
If the support at 6000 breaks, I expect to see bitcoin further losing 50% of its value towards around 3000.
I currently have no trades on bitcoin, but I would consider shorting on rebound.
Potential short 6400
SL 6900
TP 3250
Good luck and good trading!
Ever since it hit the historical high around 20000, it has lost roughly 70% of its value since.
Most retail traders have bought in above 15000, and alot of them are still holding onto it, hoping for a rebound.
The strongest support level has been around 6000 for the whole of 2018.
The channel upper boundary has successfully stopped Bitcoin from rebounding for the whole of 2018.
With that being said, as long as bitcoin does not form a higher low and higher high in 2018, the downtrend continues.
If the support at 6000 breaks, I expect to see bitcoin further losing 50% of its value towards around 3000.
I currently have no trades on bitcoin, but I would consider shorting on rebound.
Potential short 6400
SL 6900
TP 3250
Good luck and good trading!