Here is the quick Monfex market analysis update.
The overall trend does not look too good for Bitcoin . It keeps getting rejected after $12,000 and it may start settling down towards its resistance level at $11,000. The hope for seeing Bitcoin break passed $12,000 to over $13,000 (if it reaches this it confirms a new upward trend) is starting to fade. Get ready for a strong pullback towards the resistance.
The RSI is showing a loss of momentum and a trip to the oversold range. The fast EMA (100) still has an upward trend, but it is starting to make a move sideways and we may see a bearish crosss over.
What To Watch
If the price goes under $11,500 it would break through the bottom trend line of the established long term trend and confirm a new short term trend channel going down.
What To Consider
If the price cracks $12,400 then we are in Bull country. At that point, we could be headed to $13,200 (strong resistance). But with the rejects at $12,000 we are most likely looking at a further drop to the $11,000 support area .
Active Trade Signal:
- Sell (Put) at $11,600
- Stop-loss at $12,000
- Take-profit at $10,800
- Risk/reward ratio: 1:3 (very attractive)
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