BTC/USD – Potential Bearish Momentum Ahead

This type of selling off of this location is considered a failed high (or failed break out) which can be a signal of momentum change, NOT to be confused with a trend change. Based on our LONG only swing trade strategy, the 7695 key support continues to define the broader trend as BULLISH. These situations often stimulate a lot of reaction from bears who focus on smaller time frames, meanwhile it is much too premature to classify Bitcoin as being in a bearish trend.

Over the next few days we are looking for potential bearish momentum to take price back to our first inflection point around 8500. IF price can produce a reversal pattern here, we will be prompted to share a new swing trade long idea. Reward/risk would be very attractive since a bullish retrace back to the 10K is still within reason. IF price clears 7695, THAT is when we will consider making adjustments to our longer term outlook.

This article was originally posted on FX Empire

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