Hello traders everywhere. Bitcoin has been due for a big move/breakout for a while now after being trapped in a trading range of $8,500 to $7,850 since the end of September. I fully expected the move to be to the downside as pressure was mounting from the 50-day and 200-day moving averages as they got closer and closer to crossing. Last week I had mentioned the coming "death cross," and while we haven't quite got that, we did get a new red monthly Trade Triangle at $7,714.70, signaling entry into the long-term downtrend.
Bitcoin is trading well below its 50-day and 200-day MA, the MACD is close to turning lower, and the MA's are closing in on that death cross. Right now, it appears that bitcoin has found support at the $7,430 level last hit in June of this year. If the 50-day can cross the 200-day look for a big move lower, the previous time the cross happened, Bitcoin rode the long-term downtrend to the $3,100 level.
Key Levels To Watch This Week:
- S&P 500 (CME:SP500): 2,855.94
- Dow (INDEX:DJI): 25,743.46
- NASDAQ (NASDAQ:COMP): 7,700.00
- U.S. Dollar (ICE:DX): 99.66
- Gold (NYMEX:GC.Z19): 1,484.60
- Crude Oil (NYMEX:CL.Z19): 53.46
- Bitcoin (BITCOIN:BITSTAMPUSD): 8,820.00