Bitcoin Breaks Lower But Where To Next?

It has been a pretty sideways second half of August with Bitcoin having held in a consolidation for the last few weeks. We have now seen a break down which is showing more strength to the bears. Does this mean I have shorts to take right now or does it mean I remain patient? All explained in this video.

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By Trader Cobb -

Good day, everybody, hope you’re well, hope you’ve had a good week thus far. It’s been pretty slow trading wise as we have seen. Bitcoin’s been in one of those real slow consolidation periods.

We can see it for the last few weeks through here, now this is the first candle that’s actually closed below 10,000 since way back here on the 31st of July. Now, what does that mean? Well, it means that potentially here we could be in a, well, we can see further downside.

We have seen a lower high here and now it’s broken this support, relative support, not the most strong level of support but it’s definitely broken down through and closed below also below 10,000. If we break the low of this candle, then I can see further downside.

If you have a look at the weekly here, the really key level for me is through here. If we breakdown through there, let me get rid of that out of the way. If we breakdown through these lows, what we’re going to have is a lower high on the weekly, and then subsequently a lower low, which will put us in into a downtrend on that weekly.

Now, to give a perspective, you know, I work from the cradle zone a lot. We could see very easily a pullback into 7000, getting back into that cradle zone, which would give the monthly its first pullback. We haven’t seen a monthly pullback yet this year. We’ve pretty much seen just a succession of bullish candles apart from last month. Of course, this month is very close to closing as well.

Now, if we do breakdown through this level on the weekly downtrend and break into the low of this monthly candle, we’ll have two variously monthly candles of course. And a pullback into that region is definitely on the cards. It’s not happened yet. I’m not suggesting that it will happen.

It’s just that’s the sort of thing I’m looking at, and I want you to understand where we could go to from here. So what’s the plan for me? Well, quite simple. At the moment it’s just a matter of waiting, because this move down happened very, very quickly. Let me show you on the one hour.

It was basically one, one hour candle. Now, depending on what we do from here, and it’s a sort of day where I’ll probably do a scan later on in the afternoon just to check and see exactly how this market is looking. There might be shorts, but I think they’ll come later on this afternoon or this evening, if we are to get them.

Of course, that can change if the market does continue lower. If it does continue lower, I’ll be going to the lower timeframes and looking for things like boosters and whatnot. But at the moment because of that big drop, we need to wait and see what happens next.

Where’s the settle-down point? Are we going to bounce back from that? Are we going to continue lower? Bitcoin being very directionless for quite some time now, a number of weeks.

And now it’s finally broken down, but we need to see that follow through, and if it does, well, it will be shorts that I’m looking for. So, right now as has been for the majority of the week, and the last couple of weeks, it’s quiet for me. It’s about waiting and being patient for those opportunities, and waiting for that cyclicity in the trend to kick in.

If it doesn’t, well, it will be more of the same. More of hurry up and wait. As a trader, we have to be patient, and patience is the muscle that is being flexed quite heavily at the moment for a lot of traders that are out there, especially if you’re following my strategies in the way that we do things. So, take care. Don’t do anything silly. We’re still waiting to see what happens.

It’s not confirmed that we’re going to go lower yet. It’s not confirmed that we’re going to go higher. It’s still, although I’m more bearish now, still relatively sideways, and undecided. So, take your time. Be patient, and scrub up on your trading technique. Have a good day. I’ll speak to you again very, very soon. Bye for now.

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