Bitcoin markets rallied slightly during the trading session on Monday as traders came back from the weekend, but the analysis has stayed the same for months now, we simply find sellers near the downtrend line and find buyers close to the $6000 level. If we break above the downtrend line, the market then goes to the $7250 level, perhaps followed by the $8250 level next. Alternately, we could drift lower from here and the way that the daily candle closed, it does suggest that we may get sellers coming back in. At this point, I would anticipate a move back towards the $6000 handle, but I’m not expecting a major break down. At this point I’m starting to wonder whether or not we are going to get any moves.
The third possible outcome would be to drift sideways through the triangle, slicing through the apex. If that happens, the market will simply go sideways and do nothing for who knows how long. That has started to look like a very real possibility and considering the bloodbath that crypto currency markets have seen this year, you would have to write that off as a reasonably significant victory. When you look at the descending triangle, the measured move signifies that we could go as low as zero dollars. Obviously, I don’t think that’s going to be the case because I think there will always be a Bitcoin market. However, even though I am very bearish of bitcoin itself, I don’t think it will ever actually go to zero. I do think that a break down could come, and it could unwind this market to the $5000 level rather quickly. However, we need some type of negativity. There isn’t enough volume in this market anymore to cause that type of sudden jolt.
