BitcoinShort
BTCUSD: Fear of More Liquidation
Looking at a four-hour chart of Bitcoin, we notice that the recent rally has brought Bitcoin (BTC) back to a prior low point near 7300. While the snapback rally yesterday may have seemed bullish, it is in line with our theory of forced liquidation in the market. Forced liquidation, likely at the hands of Chinese authorities, can create large bounces once there is a pause in the liquidation.
So, that leaves Bitcoin (BTC) with a tactical wave structure that argues for one more colossal flush lower below 6k. The downside target looks like 5500.
Bottom Line: You have to be wary of chasing big snapback rallies. Headed into the Thanksgiving holiday, we fear more downside is on the horizon, and the decline could be more significant than people expect.
So, that leaves Bitcoin (BTC) with a tactical wave structure that argues for one more colossal flush lower below 6k. The downside target looks like 5500.
Bottom Line: You have to be wary of chasing big snapback rallies. Headed into the Thanksgiving holiday, we fear more downside is on the horizon, and the decline could be more significant than people expect.
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Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.