With the most popular cryptocurrency having lost more than 80% in a year….what is the future of cryptocurrencies?was it just a bubble? Will it be forgotten? will we see a new leader rise and put BTC behind? Technically we have called for a sharp decline and to avoid long positions since the start of the 2nd wave of the pull back. Here is the link of our post then. Technically there are some warning signs for bears but no confirmed major low yet. As long as price is below the previous base of 6k we should remain conservative.
Bulls need a break above the green area and the downward sloping trend line resistance. Bulls should first focus on recapturing 4300-4400$ otherwise they are in danger for a new lower low……and with so many people trapped in this from much higher levels…no one knows when and how a capitulation low will occur. Breaking and holding above 4400$ will open the way for a retest of the resistance at 5800-6000$. This is the most important resistance area. A rejection there would destructive for Bitcoin. It is too soon to talk about what happens at 6k. Let’s first recapture 4400$…..baby steps….
Good luck trading cryptocurrencies….