Why I think Bitcoin will drop futher
Why I think Bitcoin will drop even further than the current levels.
The daily chart shows that a couple of buying cycles have completed, each one followed by heavy selling, but the case here is different. The selling from the last buying cycle didn’t end on the bottom line of the triangle, where most people thought that it will rise from there for the new buying period (and Mooning). It was followed by a series of negative catalysts which accelerated the selling even further with a Bearish flag on the bottom line and a couple of openings with gaps. With the selling period now settling into the minds of the market players on the technical side, the chart started to support the idea of dumping crypto without any obvious fundamental reason. Now everything has turned from sentiment and fundamentals to technical play. What was the most shocking thing was that Bitcoin received its first “Death Cross” (MA50 crosses MA200 from the top). Momentum is under 100 and RSI drops under 50 again. This signals the creation of a Bear market for the long - term. Since then, the price is heavily subdued and we are getting closer for the MA100 to cross both of the 50 and 100 MAs from the top as well. MA200 - red curve, 100 - blue curve, MA50 - turquoise curve. With that as well we have a very strong supply (sell) zone circa $6738 btc/usd. So every attempt for a push up is being chocked on that level where then longs are liquidated and new shorts are being placed for a renewed selling.
With all that I think that the price of 1 Bitcoin versus the Buck will fall under $6100 by mid - August (and stay there) with the price trading between $6000 and $3350. One would say that it is a big range, but circa $3350 is the bottom of 15.09.2017 which isn’t yet tested.
Bad year for the Crypto market indeed, but this is healthy for the condition of the market itself. Suspicious ICO and Airdrops wll stop and a big portion of useless Shitcoins and Altcoins wll be destroyed, thus clearing the Blockchain and the Crypto markets from unnecessary junk. As in the past where the big banks have destroyed the small ones to survive and created dominance, so now the major Crypto coins are fighting for that as well - to survive, be dominant and to “live in harmony”. So don’t be sad that your cheap Shitcoin/Altcoin portfolio is dying. This death is actually doing a favor for the Crypto market. Convert what you have in ETH, LTC, DASH or BTC and start taking shares in the major ones.
The good thing about cheap coins? Well, they are cheap. It is going to be a second chance for everyone that are too lazy to work or to understand the more complex, traditional markets to get in and to grind for their Lambos and bragging about on Instagram.
Good luck to everyone.