Bitcoin continues to break down as overnight(US CST) trading attempts to retrace with little success. The bottoming of price around 6350 took a small bounce as shown on the mid-scale in conjunction with other bullish technicals, however, failed to seek higher levels nor keep above this pivot area.
At the moment, BTC is set to re-test and likely break the 6350 level to seek the next Rogue* target region (rectangular box).
Let’s examine this closer.
The run-up to recent highs took a fallout of about 400 points. This led to the consolidation shown on the mid-scale in the forms of a pennant with a flat bottom.
The pennant held strong for about ten days until breakage to the downside. With the retrace move of the pennant only taking back 1/3 of the massive move up, the downside should seek the same.
The official target on the downside now lies in the 6250 region – a very important area to watch as it has served as an overall higher low* to challenge the long-term bear market.
Additionally, the 6250 level now largely becomes more important every day as the long-term bearish upper trend line has dropped below it. This line is crucial to hold in order for BTC to attempt a trend change on the larger scale.
Stochastic currently lies in oversold(<20) territory and will likely bring more volatility as these zones have been major movers throughout BTC price history.
MACD also tries to remain positive, but the price is still in a struggle as the MA line (moving average) continues to push downward.
BTC is currently a No Play.
Downside Risk: High
The post BITCOIN SPOOK: Beware The 6,250 Support Level; If It Breaks, Things Get Creepy appeared first on Abacus Journal – Cryptocurrency News.