Hello traders everywhere. Bitcoin has been due for a big move/breakout for a while now after being trapped in a trading range of $8,500 to $7,850 since the end of September. I fully expected the move to be to the downside as pressure was mounting from the 50-day and 200-day moving averages as they got closer and closer to crossing. Last week I had mentioned the coming “death cross,” and while we haven’t quite got that, we did get a new red monthly Trade Triangle at $7,714.70, signaling entry into the long-term downtrend.
Bitcoin is trading well below its 50-day and 200-day MA, the MACD is close to turning lower, and the MA’s are closing in on that death cross. Right now, it appears that bitcoin has found support at the $7,430 level last hit in June of this year. If the 50-day can cross the 200-day look for a big move lower, the previous time the cross happened, Bitcoin rode the long-term downtrend to the $3,100 level.
Key Levels To Watch This Week: