BTC/USD

Bitcoin markets fell during the trading session on wiping out about half of the gains from Thursday. We still hover above the crucial $6000 level though, so over the weekend, we may see a bit of a bounce in low volume environments. However, there is a daily downtrend line that crosses right around the $8000 level right now, so it’s not likely to offer an opportunity to buy anytime soon, and I think that short-term rallies are probably selling opportunities. I think that once we break down below the $5755 level, the market should continue to go down towards the $5000 level as it is the next psychologically important and structurally important level.

That level of course breaking would be crucial, but I think there’s going to be a lot of people out there willing to throw money at it. I think it will take a significant amount of pressure to finally slice through that level. If we rally from here, I’m looking for signs of exhaustion to short this market yet again. We continue to form lower highs, and quite frankly habit formed a higher high in months. Unfortunately, there are many people out there talking about how this market is ready to take up, but that’s pure speculation. I’ve even seen professional technical analysts ignore what’s actually happening and stick to what their bias is. My bias is to trade what the chart tells me. Right now, it doesn’t tell me to buy. That doesn’t mean that it can’t, or that it won’t. But I have a target of $8000 before I would flip to a bullish position. Until then, it’s selling signs of exhaustion that works for me.

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