The BTC/USD has been in a consistent decline now for the last four days when the selling started back on 29th of July. As of right now things aren’t looking too good! We’re seeing signs of bullish reversal on the D1 time scale, which shouldn’t come as a surprise because we’re still in a very strong overall bear market when looking at the Monthly chart. However the Bollinger Bands breakout on 1W is giving hope for the mid-term.
Suspicious crash to $194.922
On the 18th of July there was a suspicious price drop all the way down to $194.922. The fact that this only happened on the BTC-E charts and nowhere else indicates some sort of a price manipulation might have occurred on that day. The price quickly recovered from the sell off, but it left a serious dent on the market for the near future. BTC-E might be directly responsible for this according to some posts on Bitcointalk.
As seen on the daily chart the BTC just made a perfect lower high which indicates a weakening buying power. I have no doubt its due to the shady as hell price drop just a couple of days prior. The trading volume itself is getting smaller, but the blackness of the candles is getting wider. That’s always a bad sign.
RSI is oversold
On a more positive note, the RSI has been hanging around the oversold area for some time now and if you take a look at the weekly chart, you’ll see that the trend line has crossed and opened upwards with the Bollinger Bands average. This, along with the breakout on contracting Bollinger Bands is giving hope for some bullish moves for the mid-term. It’s definitely not going to happen today, tomorrow or maybe even next week, but the signs of this being a mere correction and not reversal are still there for now.
265.002 is a key point
Right now the $265.002 USD per Bitcoin is a key support level for short term traders. If it holds, we can once again start looking for LONG positions to enter, but at this moment it’s best to either stay away or look for SHORT positions instead.
This post was written by ynef