Bulls Last Stand
Last update was just after the massive Bitcoin move after the news out of China came out and I noted two major supports that would be critical to hold. A few weeks later and both are lost; only one level really stands to maintain a bullish bias. Without further ado, let's take a look.
Bitcoin Daily Chart
Kicking things off with the daily chart this time around. $9,100+ was the first level that was critical to hold and after several bounces it finally gave out. The next was around $8,750 which marked the former range highs and the weekly mid and again this provided a few bounces before giving out. Now Bitcoin has lost both of these levels and has now lost the 50 day moving average for two consecutive daily closes. The daily mid-ranges from $8,200-8,250 which is confluent with the 0.705 fib level appear to be the last bullish support and where I'm personally looking to at least play a bounce. Below that and there's not much in the way of a full retrace and a re-test of former range lows at $7,600 and $7,400. To top things off, funding and premiums continue to show that people lean bullish despite the slow bleed. I think we head to the daily mids soon, see a bounce to $8,800-9,000 at most before re-testing lows. However, start to gain acceptance above $9,200 and that changes things.
Resistance: 50 DMA, $8,800
Bitcoin Weekly Chart
The weekly chart looks quite bearish. The range highs at $11,800 were swept and cleanly rejected and proceeded to dump through the mid. The news from China rocketed it back through the mid and now Bitcoin has bled back through and closed below the mid. I never like to commit to overly bullish or bearish views but another close below the mid would open the possibility of Bitcoin seeing range lows. For the record if it ever did re-test that level it would be an all-in buying opportunity for me.
Support: $7,800, $8,250
Resitance: $8,800, $9,550
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