Be Careful Buying Bitcoin Now
This will be a short post to mention that Bitcoin is looking bearish once again!
We have seen a resurgence in the price of Bitcoin and a lot of people are calling a bottom. Personally, I am not convinced that $7,000 is the bottom just yet. There is still a risk of further downside continuation.
The key word is continuation.
There is no evidence to suggest a bull trend is now in place.
Looking at the current price action, it looks similar to the grinding candlesticks to the left which I have underlined. Each of these weak rallies ended up selling off.
The price of Bitcoin could explode out the top of the channel and turn slightly bullish. But until that occurs, be cautious of trading against the trend which is still BEARISH until the chart says otherwise.
Great analysis, what's your downside target.
Don't really have a target as yet. No good trade setup right now. I still think 5k is on the cards because the rallies are fairly weak. A break above $11,800 and i'll stop being so negative towards BTC :)
I agree, a break of $12k will confirm Bitcoin wants to move higher.
Upvoted!
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