BITCOIN And suddenly $7500... What are the new dynamics?

23 oct 2019

Well you can't say today's flush wasn't expected. After all the signs have been pretty clear lately and I tried to put the into context with my latest studies (see the most important of those at the end of this analysis).

I do not want to get into much detail as I rarely comment on short term price action. However there are a few points that stand out and wish to bring forward:


1) Bitcoin is still inside a Channel Down since the late June peak and in fact is again near the Lower Low trend line.

2) The short term Support Zone is 7450 - 7000, which consists of the June Low and May 17th Low. This zone was the last Support before the late June $13800 peak (also annual High).

3) The last flash crash in September 24th kept Bitcoin on the lower band of the Channel Down, so the current flash crash could keep it as well on that lower band.

4) The RSI follows an Inverse pattern to the June - August period. The mirror fractal suggests that once today's flash crash is completed a short term rebound is at hand. This could be the bullish leg that will hit the median of the Channel Down (keeping as discussed above Bitcoin in the lower band).


But this is all about your opinion and it matters the most to me. Do you think the price will continue today's aggressive path or will normalize within the Channel Down and continue the downtrend on a steadier pace?

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