Last updated on October 14th, 2017 at 08:16 pm
What a start to the day! Over the last few days the market has been largely stagnant but we just had a $10 move in Bitcoin’s price over the last 24 hours and that’s a fairly significant move. Bullish traders are bleeding strongly as we move more into bearish territory; indeed, there had been a small measured upward trend from $251 on 04/07 but we are clearly moving out of this range now. Let’s take a look at some technicals, starting with the 1 hour mark:
We have got a few key points to look at here, so I would like to note the three circles in our 1 hour view; the first is for our benchmark high in the last four days of $263, the next circle to the right is the end of the slight positive trend, and finally our last circle marks the beginning of some huge sell volume that is currently pulling us into a bearish environment. I would caution against any buyers right now as well, since volatility is high right now and we do not know where the next uptrend will necessarily be. This movement into a more bearish market is likely to continue on over the weekend and into next week according to the short and intermediate technicals.
All told the market is oversaturated with sell orders right now and this does mean that we could get some counter-trend support around the $220 level. If there is a counter push here it will likely stop at the $250 level and this would be a good place to get some short trading done, though it should be done with care. I recently read about the “hopium” threat and how it can hold sway in trading decisions and beware! It is too good not to share some Urban Dictionary in a market report:
“… a political narcotic distributed by vested economic interests that makes moderate social liberalism, ethnicity, individual purity of heart, and soaring rhetoric appear to be substantive progressive change; co-optation of the left by vested economic interests”
Laughs aside, be wary in any trading over the next few days. Hopefully we get avoid the hopium-based difficulties and find a baseline around $200; this is a pretty reasonable low for the market given all that has happened over the last few weeks. I would encourage any readers to just check a few headlines on other articles here but there have been a lot of happenings that have and will continue to impact the market. It makes the high of $300 back in mid-March feel like such a sweet point but the market will rebound and I wish everyone good luck in their trades until then.