Bitcoin rallied happily this year into the June top. Folks began tripping over each other chasing bitcoin higher to 10K, 11K, 12K, quick, the train is leaving the station. Unfortunately, it derailed peaking out at 12600. The descending triangle over the last three months was an ominous pattern.
Using a couple different baseline levels, the blue triangle has a vertical side from 9950 to 12600, which is 2650 points distance. The purple descending triangle side is from 9550 to 12600, which is 3050 points difference. Thus, if the 9950 fails, the target is 7300 and if the purple triangle baseline fails at 9550, the downside target is 6500.
Price is at 8289 currently. The 6500-7300 landing zone is in play since both descending triangle baselines failed. The MACD line is weak and bleak wanting lower lows in price in this daily basis but the RSI and stochastics are oversold and agreeable to a bounce for a day or two first. The 200-day MA is at 6820 coming up to join the party at the 6500-7300 zone.
The bitcoin weekly chart is punched in the face down -22% thus far this week; that's a crash so more weakness is likely on the weekly basis. The 50-week MA support is at 6620 and rising another character moving up into that support zone area. Bitcoin may be a buy, say in mid to late October, probably from 6200-6800. In a couple days, the daily chart will likely set up for a bounce that lasts a few days; nimble speculative traders should be aware of that. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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