Price at Bitstamp hit 50MA lower BB support | 3Day time interval
Market has been heavily damaged. However, if you are actively trading, it is sensible to protect profits on your short positions.
Overall reactions have been mixed and bottom picking is very dangerous as there is yet no confirmation.
Please note that today’s low has nothing to do with support coming from the “high” of April 2013, while current market conditions are completely different.
Healthy support is estimated on the daily candle close and it’s retest; not simply on a rejected “high” that occurred almost 21 months ago.
Moreover, after a continuous breach of key levels, following a $50+ drop in less than 48 hours, it is reasonable to expect temporary reversals.
On the long side: At the time of writing, long trades could be considered on a confirmation above $275 with an initial target up to $289. Although, further data needs to be collected and appropriate resistance levels will be presented on our next weekly preview report.
On the short side: In order to form a solid base, market lows usually need to be repeatedly tested and hold, at least on the hourly time interval. Current low rests at $255 50MA lower BB (orange arrow).
Overall: Market is not yet giving signs of a solid/healthy bottom.
Our Stance: Waiting for confirmations. Monitoring market action in both directions.
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