Bitcoin Weekly Report — Why is Bitcoin falling?
Bitcoin — Price has continued to fall as Bitcoin can’t hold key levels as price action begins to look nasty.
Our predictions from last week played out, which predicted the possible fall in price. Bitcoin is failing to hold key support levels, bearishly retesting resistances leading to uncertainty in the market. In this article we will touch on where price might bounce, reject, and key levels that are crucial to hold.
BTC Daily
https://www.tradingview.com/x/RS6J0LFw/
The daily chart has not changed much other than the most local support trendline being broken. This of course is not ideal but we still feel there is a potential for a bounce and the next trendline. Whether or not I believe this will hold will be purely based on price action when it reaches the area of value.
I am taking a slightly bearish bias as price has formed a lower high on the daily and has failed to hold the minor support level at $40,000.
4 Hour Timeframe
Below is two pictures, one of last weeks predictions and the other of current price, you will see that this exact scenario played out and offered us a couple of trading options.
It is always important to remember which bias to hold when placing a trade. Going long was fine but being aware of the currently market situation and price action allows you to know when to pull the trade in profit and wait for more information. Rejection at the trend line occurred while having an overall bearish view on the 4hr chart. This was a great indication to take profits and wait for more info.
We have now broken a key horizontal level , as you can see price dipped to 38,500 on the 18th and recovered, so I would be looking for a move down to that level or even past it and then a retest before going short again. The type of thing I am looking for is represented by the arrows.
Major Alt Coins
Alts aren’t doing much different as price of BTC drops alts also suffer.
ETH/USD
https://www.tradingview.com/x/xLN4GTX5/
ETH failed to hold the support and the rejection at the key level led to a short opportunity. The next level to look for price to hold is around the 2820 level and I would expect to see some orders be filled here and at least hold this zone temporarily.
If this level is not held I would be extremely worried about major alt coins.
LTC/USD
Last week we successfully predicted the bounce area of LTC. This week LTC gave plenty of warning signs that the bounce was going to be short lived.
https://www.tradingview.com/x/bgM7r9ZG/
The red zones are clear bearish signals while the yellow represents a possible long but not one I would be confident on, the green represents an area I would look for LTC to reclaim before going long again.
There are three scenarios I am looking for. Price could come back into this zone for some time before reclaiming the 107.5 area and continuing up to the previous highs
Another is that price falls below the 96 level but quickly reclaims the 100 area which would be a positive sign but I would still be looking for more confirmation.
Finally price might fall below the previous levels of 92.50 and bearish retest the 97 area , failing to claim it and continue further down. This could see LTC fall to prices of 90, 78 or even 66
Thanks for reading and as always follow your trading plan and manage risk.
If you want to get in touch with me follow me on
Twitter: @NickWoodFX
Email: nw.forex@outlook.com
Nick
This is not financial advice. The information contained on this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. You and only you are responsible for your trading and investing decisions. I am not a professional. I accept no liability whatsoever for any loss or damage you may incur.
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