Unfortunately, as with last week, we are continuing a bearish trend for BTC and Altcoins in general. Bitcoin is currently stuck and undecided as to correct further or push up to test resistance.
Scenario 1 - Bears Win
Sticking to the 200 simple moving average (SMA), which suggests a target level of around $5950-$6050 if we drop.
We may even spike further down from these levels too. The bounce this time will be key and as it is the start of a new week, I can see something like this materialising within the next 24-48 hours.
The traders and institutional buyers all look for the 200 SMA as a key level to start buying and buying hard.
Last time BTC tested the 200 SMA was way back in Oct 2015.
There are lots of keys events happening this week too including the G20 meet and also the Senate Committee meeting in the US. Cryptocurrency will be on the agenda and if the comments are favourable then we should see the markets bounce hard. If not, well....
Scenario 2 - Bulls Counter
If bitcoin has indeed found its bottom, and DOES NOT test the 200 SMA, then we really need for buyers to come in soon and push the price back up swiftly to test the resistance level at the prior 100 EMA.
The 100 EMA is around the $10,000 to $11,000 levels, AND bitcoin's price must remain / consolidate above these levels in order to suggest that we have turned the corner.
Are you sure about that?
Sure about what? Going down or up?