Thursday, May 17, 2018

Bitcoin Price Holds Downtrend Even After Consensus

Bitcoin and other crypto currencies have tended to move higher during and following the biggest Bitcoin event of the year, Consensus. In trading terms that's a sign of "bad action" and a bearish trading signal.

Bitcoin In A Downtrend

We recently pointed out that Bitcoin as the proxy for crypto currencies is currently in a downtrend.  We'd guess that many traders were hoping for a Consensus bounce but didn't get it.

Consensus has passed with no up move. Not good.

Here's Bitcoin, Bad Action

As a trader, unless you're bearish you don't like a downtrend.

What's worse is when you expect a good reaction and don't get it that's a negative trading signal.

It's called "bad action."

Simply, when you hope for good and get bad it's a sign that selling is overpowering the good news.

It's a bearish sign for bitcoin after a key catalyst event passes.


Let's Zoom Out

Again, not getting a positive reaction from a bullish event should make traders concerned.

There's some support at 8000 but there's not bigger support until 6500.

That move would hurt and spook traders that we can break 6500 to continue this medium term downtrend that started in December.

Conclusion

The trend matters and for now, it's still pointing lower.






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All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless. Model portfolio trades and positions are hypothetical to be used for directional analysis and ratings purposes. Elazar and its employees do not take individual stock positions to avoid front running and other potential customer related issues.

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