Friday, Bloody Friday Charts - Bitcoin Pukes, Bitcoin Cash 3 Digits, All Top 100 Alts Down

Friday, bloody Friday.

The hits keep coming for cryptocurrency this week, with a deep sea of red this morning leaving almost every alt coin at a negative double digits. No particular news appears to be driving this drop.

Tether, continuing to shrug off its many concerns about audits and fund security, is the only thing not showing a drop this morning which is of course entirely expected for a pegged asset that is not traded speculatively. (It would be nice to see SBD used for this purpose!)

Definitely one of the most awkward shots I've ever tried to squeeze in.

Bitcoin itself dumped another 10% over night before staging a modest recovery on very little volume (pictured, blue arrow.)

No volume = no confidence (yet).

Grim though this may appear, we are still in good shape as long as we are well above our temporary previous low of $6000.

My hope is we are painting a larger, if slightly asymmetrical, reverse head and shoulders pattern on the Bitcoin chart. By retesting the $8000 area, we are hopefully confirming the right shoulder and laying a final base for price to make a new run for previous highs.

I've highlighted two examples of this formation above (hopefully.)

We'll have to wait and see if that pans out.

Bitcoin Cash is testing critical lows from the drop after December's run to $4100. Bitcoin Cash needs to hold above the low drawn at the hypopthetical reverse head in the following chart:

As you can see from the orange-circled region, Bitcoin Cash is right in the action zone. It can't afford any more than another $100 of selling, tops, without breaching the hypothetical reverse head and shoulders.

With any luck, the selling pressure has been exhausted and cryptocurrencies can renew their bull trend from a far stronger base. Anything under $8500 BTC is as good a price as one might expect.

This is not financial advice - do your own due diligence.

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Sources: Google, Discogs, Cryptowatch, Bitfinex, CoinMarketCap
Copyright: U2, CoinMarketCap