We’re keeping an eye on bitcoin once again this week. We analysed the top cryptocurrency a week ago, and unsurprisingly, we were right! At the time of writing my previous piece, bitcoin was above 3,400 USD and we had a bearish outlook, saying that we should go much lower than this, having one particular target in mind. See for yourself:
“The new week started with a test of the broken support as the closest resistance, so a very clean price action movement. So far, the test is positive for sellers, which increases the chances of a further slide towards 2,900 USD (blue).”
Our view was spot on and the price declined sharply, literally straight away! Almost every single day last week ended with lower lows and highs. The new week hasn’t started off any better. We are around 3,200 USD and getting closer to our ultimate long-term target slightly below the psychological barrier of 3,000 USD (blue). Quick reminder: this area was important in May, June, July, and September 2017, so we assume that it will be tested once again pretty soon. Our outlook on BTC remains negative.