Bull trap for BTC/USD exchange rate as price dips back to $9000
After a miserable week which saw Bitcoin back sub $9000, the weekend was much kinder to cryptocurrencies, as Sunday, in particular, saw some solid green candles across most major digital currencies. Monday looked for all the world like the good times were set to roll on with Bitcoin up 15% at its peak, testing $9500 on multiple occasions. Sadly, it was not to be as the major cryptocurrency was utterly rejected and the $8000 handle was revisited once again. There wasn’t a significant piece of headline news to focus on which might have caused the big shock to the downside, but for now, it does appear that cryptocurrencies remain one of the favourite assets which short-sellers are keen to target and they remain extremely slippy to the downside.
Goldman still bearish Bitcoin
Although things have not been going well of late in Goldman Sachs trading, and the commodity department, in particular, has been the focus of a forced reshuffle, one of the asset classes which they have had spot on for a while has been Bitcoin. Their latest forecast is considerably bearish and it is the giant investment bank’s opinion that recent lows could be revisited, which means that $5000 BTC could not be that far away,
“The break is significant as implies potential for a more impulsive decline, the next meaningful level is down at 7,687-7,198; includes the 200-dma and a 1.618 target off the high. The 200-dma in particular is important given that it held very well at the previous low in September…Getting a close break this time around would warn of structural damage, increasing the risk of new local lows (
I think it is safe to say that most people, in the short term at least, are quite bearish Bitcoin. The staunchest of Bulls might be accepting of this, but it is the longer-term trendlines which are their last line of resistance. There have been several large crashes in Bitcoin over the year, and they are buying into the trend that any sizeable dips have resulted in higher highs soon after.