One of the precautions we took when Bitcoin moved above 70,000 was to wait for the weekly close, in order to avoid getting caught in a bull-trap.
It is still the same week and Bitcoin is now trading back below 70,000.
70,000 is a very important level because this is the price from which the major August bearish impulse got started. Moving and staying above this level would mean that the bulls win, trading below it means that the bears are in control.
After exactly three days above this level, Bitcoin is now back below it. This move ended up either as a failed breakout or simply a bull-trap, makes no difference how we call it. What is important is to know, and be prepared, to what is most likely to happen next.
Yesterday's session is quite decisive, it ended as a Doji. At one point, BTCUSDT tried to move higher and reached as high as 71,611 but then there was a strong rejection. The session ended with a long upper shadow and the close happening below the days open; bearish.
What to make of this information?
Will Bitcoin continue higher or go lower?
A failed signal is a very strong signal. If there is a bullish signal that quickly turns into a bearish one it tends to be worth more than a normal bearish signal. That is to say that the rejection above 70K is strongly bearish. Now, considering all options, the week is not yet over. Moving back above 70K would strengthen the bulls massively and even open the doors for higher prices, so anything goes. As the chart is looking now, it is pointing down.
So this is looking at Bitcoin. Both the daily RSI and MACD are weak. The RSI a bit better but the MACD has a strong bearish tendency.
The bearish move is not fully in so the best we can do is to look around to see what we can find to help us predict what will happen next.
The DXY is ultra-bullish, we have the USA elections and the Altcoins are crashing.
Bitcoin is going down.
Best Regards, Trade Cryptocurrency
