BTC/USD
Bitcoin fell slightly during the trading session on Wednesday, as we continue to bounce around the $7000 handle. The move from the previous session was a bit strong, so it’s likely that the market needs to catch his breath a bit. However, there is a major downtrend line above, and that should continue to put a bit of a lid on the market. Because of this I am simply waiting on some type of exhaustive candle to start selling again. I would point out that volume is much lower than it once was, and I think this shows the general malaise that has gripped the crypto currency markets.
Recently we had seen some hope come into the marketplace because of the possibility of a sanctioned ETF, but those hopes have been dashed in the short term, and therefore the market had to reassess things. Ironically, it’s that exact reason to rally that will undermine the whole idea of bitcoin itself. Remember, it was just a couple of years ago when anonymity or at least pseudo-anonymity was a big selling point. As soon as you get the ETF community involved, it becomes yet another Wall Street traded commodity or fund.
At this point, it’s painfully obvious that the $6000 level is being guarded by someone, but until we can make a “higher high”, I have to assume that it’s only a matter time before we break down through it. Ultimately, this is a market that is still in a downtrend from the beginning of the year, and that will change until we break through that trend line above. At this point, if we can break above the $8000 level, then I would seriously consider the possibility of a trend change.
