The support line obviously couldn’t withstand the pressure. Due to a series of negative news and events, including Binance bot hack, U.S. Securities and Exchange Commission warning about “Potentially Unlawful Online Platforms for Trading Digital Assets”, Japan’s month-long suspension of two domestic cryptocurrency exchanges and a report that a Mt Gox trustee sold $400 million worth of BTC and BCH in the span of a several months, bitcoin lost around $1.000 in a short period of time. Bitcoin struggled for a day near the last lower high at around $9.300 and continued its down-run towards $8.300.
I warned about this scenario in the previous “Bitcoin Update” and now we’re here. I hope you did some shorting at least. Right now Bitcoin is in a situation where there is a good chance it will continue its down-run towards $8.000. If the bad news will continue Bitcoin will go towards the lower support line. This support line is as important as the upper neckline resistance line. If the support line won’t hold, shorting and fiat currency will be your only friends. The crossing of the neckline will mean that we’re in bullish mode. You can read about that scenario in the previous post.
There’s a good chance that there’s a big triangle pattern in the making. I advise you to trade quick up and down fiat pair moves. Everything else is to risky at the moment.